Contractual Agreement Between Apple and Samsung for A-Series Chips Coming to an end in June 2013


By: Jeff Stewart  |   April 8th, 2013   |   Apple, Business, Gadgets, News, Smartphones

The Economic Daily News has reported that the alleged A7-chip from Apple will be manufactured on 20nm starting next year. This update will make the process smaller when compared to the previous version. In addition, their is also speculation that suggests this time instead of Samsung, Apple’s exclusive supply partner for A-series chips, TSMC is going to build the chip. The report also draws attention to the fact that Samsung and Apple had an exclusive supply agreement between them for A-series chips, but now this contract is coming to an end in June of 2013. In spite of being a long term partner with Apple, Samsung is still awaiting for the California-based tech giant’s orders to build A-7 chips for the upcoming year for the iPhone 6.

 

Apple so far has not officially ordered Samsung to build the chips and it seems that the Cupertino-based company will probably engage TSMC to produce the A-7 chips. This move will surely end the long association between Apple and Samsung.

 

The rumours of partnership between Apple and TSMC have not emerged for the first time, as they were swirling for quite some time. Besides this another rumour is also around and states that Apple might split orders between three companies including Intel, TSMC and Samsung.

 

On the other hand, TSMC has high expectations for their forthcoming 20nm chip production process, which the company is looking to unveil next year. Sources from the industry have reported that TSMC has already commenced the installation of the production equipment at one of the first foundries of the Taiwanese company called Fab 14. If the report proves true then TSMC is installing the plant two months ahead of time.

 

This indicates that TSMC will start production in big volume by the end of the second quarter, whereas the shipments “will gain momentum in the second half of the year.”

 

“Because 20nm SoCs are expected to be TSMC’s major competitive advantage in competing for Apple Inc.’s orders for its next-generation A7 processor, the company has attached great importance to the foundry’s construction, the reports said.

 

In an unusual move, the reports said, TSMC has sent more than 100 engineers to equipment manufacturers in the United States, Europe and Japan to conduct quality checks to make sure that its new plant can start operations in the new time frame.”

 

However, so far neither Apple nor TSMC has confirmed that these speculations are true.

 

Source: iPhoneinCanada

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