TSMC Confirmed as Apple's New Processor Fab, Samsung Divorce Ongoing

[Phillip Swanson]

Apple and Samsung have been embroiled in a bitter legal battle spanning multiple product lines and continents, but somehow in spite all the turmoil the two have remained business partners. Digitimes is reporting the two companies' frienemy relationship may have finally reached a tipping point.

According to Digitimes' sources Apple's new processor foundry is Taiwan Semiconductor Manufacturing Company. The source cites the aforementioned legal trouble with Samsung as the driving factor behind the move. If the deal is in fact true, it will mark the first time another company has provided Apple with processors for the iPhone since the phone's release in 2007. Samsung is also the manufacturer for Apple's A5 processor which powers the iPad 2 and is rumored to be powering the upcoming iPhone 5.

The contract with TSMC will apply to 20nm and 28nm processing technologies for the production of Apple's next-generation CPU. The terms of the agreement look to very lucrative for TSMC and kick in the gut to Samsung.

TSMC is believed to have quietly secured Apple’s contract, and even succeeded in extending the deal to cover the manufacture for the A6′s successor, the sources said. In addition, the agreed contract quotes are favorable to bring little impact on TSMC’s profitability, the sources revealed. TSMC managed to negotiate a good price, allowing gross margins yielded by Apple’s orders to be similar to its overall gross margin performance at present, the sources indicated. TSMC’s gross margin for the second quarter of 2011 arrived at 46%.

Neither company is commenting on the supposed deal.

Sources: Digitimes

[Vandale]

wow... this shocked me

[Breezer23]

In other news: Apple was awarded a patent for designing the CPU and have now sued Samsung for patent infringement. Furthermore, Apple is requesting that Samsung be banned from selling devices anywhere in the known universe for fear of competition. No response from Samsung on the potential litigation.

[EMTZ13]

Samsung kinda messed things up for themselves thinking that just because they make the majority of Apple's hardware that they could do whatever they want without feeling "the wrath of Apple". They shot themselves in the foot.

[MetallicaFan1991]

Now we will never get SAMOLED + on the iPhone I hate LCD screens after seeing Panasonic Plasma's and Samsung SAMOLED.

[Dizzy714]

Watch them purposely make botched CPU's, LOL.

[PRKnight]

man that picture up top makes me wish that the iPhone 4S gets the A5 chip while the iPhone 5 gets an A6 chip....to bad that won't happen

[manbearpig]

man that picture up top makes me wish that the iPhone 4S gets the A5 chip while the iPhone 5 gets an A6 chip....to bad that won't happen

that picture of the A6 processor is photoshopped. Look at the 6. they just took a pic of the A4 and added a 6. I'm a photoshop expert. trust me. The A6 probly dosnt even exist yet.

[McMichael96]

that picture of the A6 processor is photoshopped. Look at the 6. they just took a pic of the A4 and added a 6. I'm a photoshop expert. trust me. The A6 probly dosnt even exist yet.

I think every human being knows that's fake... And it's spelled probably not "probly"

[DirkAloha]

Old Korean saying.........never bite the hand that feeds you.

[Xenthis]

wow!

[Lloyd1941M]

What a shock technology！