TSMC Confirms Deal with Apple to Produce A-Series Chips for Future iOS Devices

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jun 28, 2013.

  1. macrumors bot


    Apr 12, 2001

    The Wall Street Journal is reporting that Apple has signed a deal with Taiwan Semiconductor Manufacturing (TSMC) to produce some A-series chips for Apple's iOS devices starting in 2014. The article confirms a report from Digitimes published earlier this week regarding the deal.
    The report states that TSMC plans to start producing the chips in early 2014 using 20-nanometer technology, which would make chips smaller and more energy efficient. The two companies have been discussing their arrangement since 2010, with serious discussions on the process of creating the chips starting in 2011.

    TSMC executives told the WSJ that Apple had asked to either invest in the company or to have TSMC set aside a factory specifically for Apple chips. Executives said they had denied both options because they wanted to keep TSMC's independence and manufacturing flexibility intact.

    Apple has so far used Samsung to exclusively manufacture the A-series chips for its iOS devices, but with the two companies becoming rivals in the mobile device market, Apple has been trying to reduce its reliance on Samsung for components.

    As the WSJ notes, Apple and Samsung's relationship as far as components goes back to the early days of the iPod as Samsung won some business from Apple after the company became unhappy with original iPod processor supplier PortalPlayer. While Apple was aware that Samsung planned to compete with it in the mobile device market, Samsung had told Apple that it kept its component business separate from the mobile device business and promised to keep its executives from sharing information with each other.

    Some Apple executives didn't like the arrangement, and in 2008 Apple began an effort to shift away from Samsung for its flash memory supplies. In 2010, Apple made a similar move with its iPhone displays, shifting production from Samsung to Sharp and Toshiba, although Retina display iPads continue to use Samsung displays.

    And while Apple is trying to rid itself of its reliance on Samsung, the Korean company understandably would still like to keep Apple as one of its customers, with an estimated $10 billion of Samsung's reported $59 billion in component sales coming from the Cupertino company.

    Article Link: TSMC Confirms Deal with Apple to Produce A-Series Chips for Future iOS Devices
  2. macrumors regular

    Jul 15, 2008
    NYC, New York
    Let's hope these new chips put out some good numbers.
  3. macrumors newbie

    Oct 2, 2011
  4. macrumors 68030


    Dec 30, 2009
    No matter what the competition puts out chip wise, and no matter the benchmarks from the competition. Apple seems to always hold their own!
  5. macrumors 65816

    Sep 7, 2003
    Costa Mesa
    TSMC better be prepared to deal with a tough customer. To those that don't follow the AMD vs nVidia wars, TSMC will over-promise and under-deliver.
  6. macrumors 68040


    Jun 26, 2009
    Burpelson AFB
    TSMC played tough with Apple and it looks like it's going to pay off for them.
  7. macrumors 6502

    Apr 26, 2011
    Was hoping that TSMC would score a deal where Apple would redesign their logo.
  8. macrumors regular

    Mar 23, 2004
    Congratulations to the company with the worst logo in the world!

    Seriously, call me.
  9. macs4nw, Jun 28, 2013
    Last edited: Jun 28, 2013

    macrumors 68030


    That is a sizable chunk. It's still a good mutual business arrangement.

    You gotta give those Taiwanese credit.....

    That APPLE would fall for that, borders on the incredulous.
  10. Guest

    Dec 7, 2010
    Meh, Samsung made A4-A6 chips were amazing.

    Hopefully quality is not lost when TSMC makes them.
  11. macrumors 6502a


    Jul 11, 2011
  12. macrumors 68020

    Dec 13, 2012
    Southern California
    Apple has a storied history establishing new relationships with chip manufactures, using them, then squeezing them to reduce pricing. After a run of a few years Apple picks a fight bashes them in public so as to make the manufacturer the villain only to be replaced by their next target.

    Going way back to the beginning all Macs were equipped with Motorola chips until Apple used them up and spit them out. All the while the Apple devotees used the derogatory term ~ Wintel~ to describe PCs comprised of Windows running on Intel chips.

    Once Apple divorced Motorola, only a spin master like Steve Jobs could convince the Apple Faithful that suddenly the chip maker... Intel... they bashed was now going to be used in Macs.

    One thing that Apple's great at is remaining a very polarizing company.

    There's nothing quite as entertaining as reading the adventures and fables of Apple Inc. :D
  13. macrumors 65816

    Sep 7, 2003
    Costa Mesa

    You don't have a clue. We are now less intelligent from reading your post.
  14. macrumors regular

    Oct 30, 2011
    Would have been awesome to see intel produce Apple's A-series chips
  15. macrumors 6502

    Oct 15, 2010
    Bye-bye Samsung...

    #1) that TSMC logo IS hideous.

    #2) good move for Apple; especially as they want to distance their reliance on Samsung components.

    and #3) seriously, somebody fix up that TSMC logo for them, looks straight out of a 1980's trashcan.
  16. macrumors 68020

    Dec 13, 2012
    Southern California
    It's OK, not everyone knows their Apple history.

    Try Google it's a great way for you to catch up.
  17. macrumors 604


    May 28, 2005
    He does have a point or two though, you can't deny that the huge push for battery life on the new intel chips comes from Apple - every other manufacturer was content with 3 hour battery life - and PPC was the "best" CPU architecture until Apple went Intel.
  18. macrumors newbie

    Jul 18, 2004
    For a world class chip manufacturer isn't it about time TSMC gets a decent logo???!!! I mean really they're making chips for Apple for gods sake!
  19. duffman9000, Jun 28, 2013
    Last edited by a moderator: Jul 1, 2013

    macrumors 65816

    Sep 7, 2003
    Costa Mesa
    Are you talking about Motorola? Apple took way too long to jump ship.
    Are you talking about Samsung. This was a unique relationship where a "partner" turned direct competitor.
    Furthermore, isn't a company supposed to get it's components at the lowest possible cost?

    Apple used Motorola and spit them out? Hahahahaha... Where is Motorola after Apple dumped them? Where are their CPUs?

    It's called marketing. Have you heard of the term?

    This is the only logical statement in your entire post.
  20. NOV
    macrumors 6502


    Mar 27, 2004
    The Netherlands
    I hope TSMC will collect enough funds through the Apple deal to introduce a new corporate logo.
  21. macrumors regular

    Jul 29, 2008
    Wales UK
    This would explain the proto type with the alleged TSMC manufactured SOC. from the sounds of it its been in ongoing development for years
    Possibly hundreds of the things around.
  22. kis
    macrumors 6502a

    Aug 10, 2007
    I hope that goes better than the LG display thing for the rMBPs.
  23. macrumors 604

    Mar 21, 2011
    Australia, Perth
  24. macrumors 6502a


    May 7, 2011
    I can't tell if the article is about how ugly the TSMC logo is or about the alleged deal between Apple and TSMC.

    In any case, there's still the possibility that Apple did seed this rumor as a negotiation tactic against Samsung.

    As a consumer, I just want my next SoC to be a quality chip with real improvements in energy efficiency, speed and power.
  25. macrumors 6502a

    May 29, 2009
    They might as well confirm it. It was the worst kept secret ever.

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