Reports of Apple searching out other chip suppliers
It seems like Samsung and Apple have been fighting each other for what seems many years, but it has been just over a year they have been battling it out in the court room. And yet at the same time, they have been business partners where Samsung has been supplying them chips for the iPhone and iPad. That creates a very strange relationship between the two companies. And it makes you wonder how long they are going to continue the business relationship given all the legal battles which are going on between the two.
There are rumors starting to go around that Apple may be moving away from having Samsung manufacture the A5 and A6 chips. Apple designs the chips and then turns over the specifications for manufacture. For years that has been Samsung and has turned into a multibillion business for Samsung. Apple is their largest customer for chip production and losing that business could have an impact on the bottom line. Obviously there are other companies which could fill in the gap as Apple moves away, but that will take time. In other bad news, Apple has hired away a chip engineer from Samsung.
Exactly when Apple is going to begin pulling away is not know. They cannot do it all at once, but it looks like Apple is making moves in that direction. Apple is reportedly looking at TSMC for chip production. They are a Taiwan based company who could produce future chips using less power. All of this is not looking good for Samsung in their manufacturing area. If Apple continues to move towards TSMC, it could bring benefit to Samsung. TSMC is a smaller company and rumors are circulating that they are focused on Apple and not on existing customers.
That provides Samsung with the opportunity to pick up some business to begin to fill in where Apple will be leaving. In the end, Samsung could come out of this looking pretty good after losing the business from Apple. Much of this is speculation and rumors, but it does fit in as these tow have been slugging it out in the court room. Apple continues to accuse Samsung of copying their products, though some documentation from the recent court battle shows that was never their intent. The battles are far from over.