Apple inks multi-billion dollar chip fabrication deal with Samsung, sources say

“Samsung Electronics agreed with Apple to produce application processors (APs) from next year for iPhones and iPads, sources said Monday,” Kim Yoo-chul reports for The Korea Times.

“The agreement means Samsung will become a primary supplier of APs to Apple, pushing its chief Taiwanese rival TSMC back to second place,” Kim reports. “From 2016, the company will supply 80 percent of APs used in Apple devices, and TSMC the remainder.”

“AP chips function as the brain in computing devices. Apple will design its A-series APs, and Samsung will fabricate them in partnership with GlobalFoundries (GF), a semiconductor manufacturer headquartered in Santa Clara, California,” Kim reports. “‘Apple has designated Samsung as the primary supplier of its next A-series chips powering iOS devices from 2016 as the alliance with GlobalFoundries (GF) enabled Samsung to cut off capacity risk,” a source familiar with the deal said. The value of the deal is said to be worth ‘billions of dollars,’ according to the sources.”

Read more in the full article here.

MacDailyNews Take: Tim Cook to the Samsung thieves: “I wish I knew how to quit you.”

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Bernstein: Why Apple Will Leave TSMC Next Year – August 4, 2014

26 Comments

  1. Really sad to see that there aren’t better companies out there to make Apple’s chips. Really really sad.

    I’d personally like to know why the alternatives were not as desirable from Apple’s perspective. Then again, I’ve never approved of Apple gear being assembled, let alone made in China: Criminal Nation.

  2. I hope Apple stops doing business with Samsung.
    Samsung has a longer view of history.
    They will cooperate now but do as much stealing and damage as they can in the long run…hoping to dominate in the future.
    They should never be trusted and should not be used as a parts provider, ever.
    Without trust and respect there can not be good business.

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