Apple to ditch Samsung manufactured parts by next year

Jeremiah Yap – Fourth Estate Cooperative Writer

San Francisco, CA, United States (4E) – In a move to discontinue it’s reliance on rival Samsung, Apple has agreed to a manufacturing partnership with Taiwan Semiconductor (TSMC). The deal will kick in sometime next year. Before Apple’s agreement with TSMC, it relied on Samsung to provide parts for the iPhone, iPod, and iPad. This is a move that makes sense for Apple given the legal and competitive battles against Samsung.

TSMC has confirmed the news and has announced that Apple products will begin shipping with it’s chips in 2014. The talks between the two companies began as early as 2010.

“As early as 2010, Apple and TSMC started discussing working together to build the chips, say the TSMC executives. In 2011, TSMC senior executive Chiang Shang-yi met Apple officials to discuss collaborating on the complex process. Apple asked to invest in TSMC, or to have TSMC set aside factory space dedicated to Apple chips, the executives say,” as reported by the Wall Street Journal.

The anticipated release of the new iPhone and iPad models this year will still have Samsung manufactured parts. Samsung processors use the 32nm process. TSMC is planning to use 28nm process for Apple, which will save battery power.

The deal between Apple and TSMC took a while to materialize because the Cupertino-based company first felt that TSMC’s chips lacked the speed and power it wanted in it’s products.

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