Apple's Choice to Change Chipmakers Causing Concerns in the Industry

[Akshay Masand]

Many concerns are arising in the semiconductor industry regarding Apple’s potential switch from Samsung to TSMC for production of iOS device processors. Supply chain sources recently indicated to Digitimes that the Taiwan Semiconductor Manufacturing Company will begin producing chips for Apple in 2013. Industry observers indicated that demand for chips from Apple is expected to be massive, with roughly 200 million CPUs for the iPhone and iPad needed every year. This move causes concerns among TSMC’s current customers who are afraid they could be squeezed out if Apple takes up the bulk of TSMC’s orders.

According to the report, “TSMC’s advanced process offerings serve the world’s major fabless IC firms including Altera, Qualcomm and Nvidia. While being capable of providing sufficient capacity to Apple, TSMC does not want to upset its existing major clients, the observers noted. Allocating efficiently its production capacity will be a focus for the foundry in 2013, the observers believe."

Rumors of a deal between Apple and TSMC have been afloat for quite some time but Samsung continues to remain the sole supplier of custom ARM-based processors for the iPhone, iPad, iPod Touch and Apple TV. The growing rift between the two tech giants has increased talks that suggest Apple plans to move its chip production away from Samsung. The move which was previously just a rumor now may seemingly become real. As with any information from Digitimes, it has to be taken with a grain of salt since the publications record has been spotty when it comes to predictions and rumors.

Source: Digitimes

[tudtran]

Whatever! This is a chance for tsmc to make a tons of money. I'm sure they have people trying to figure things out.

[mustard05]

Whatever! This is a chance for tsmc to make a tons of money. I'm sure they have people trying to figure things out.

Yea, I agree with ya

[Raptor2213]

This has nothing to do with reality. If Apple has that much demand, they'll just make more factories. The only real concern is Apple backsliding to proprietary CPUs that won't run Windows (again). That was a major selling point for Apples, and without that, they're going to lose some pretty massive market share on PCs again.

Changing to Intel CPUs was the best choice they ever made. Barring some massive failings on Intel's part, only an idiot would seriously consider going back to the dark ages of proprietary Apple CPUs.

[twitchee3]

This has nothing to do with reality. If Apple has that much demand, they'll just make more factories. The only real concern is Apple backsliding to proprietary CPUs that won't run Windows (again). That was a major selling point for Apples, and without that, they're going to lose some pretty massive market share on PCs again.

Changing to Intel CPUs was the best choice they ever made. Barring some massive failings on Intel's part, only an idiot would seriously consider going back to the dark ages of proprietary Apple CPUs.

well, your comment has nothing to do with the article. the article focuses solely on chips for iOS devices, while your comment is regarding chips for mac os.

[Norb]

I think they should make their own chips for iOS devices only. Beyond that they are going to shoot themselves in the foot if their computers no longer run windows.

[fanboyfanboy]

Many concerns are arising in the semiconductor industry regarding Apple’s potential switch from Samsung to TSMC for production of iOS device processors.

READ! This is about iOS device processors... Mobile devices not Mac's, please understand this has nothing to do with mac's, so no need to keep talking about them switching Mac processors because they are not.

[kalpesh78]

I see a new lawsuit by apple in the making. First tsmc makes money. then apple takes it back. all 1 billion of it :P