Apple Unsuccessfully Tried to Purchase Exclusive Access to TSMC Chip Production for iOS Devices

[Alameda]

The only concern Samsung Semi has about the Apple lawsuit is whether they can meet the increased demand.

Samsung Semi is a very separate entity from Samsung Mobile. Different buildings, different P&L... they don't talk to each other.

 

[lilo777]

The only concern Samsung Semi has about the Apple lawsuit is whether they can meet the increased demand.

Samsung Semi is a very separate entity from Samsung Mobile. Different buildings, different P&L... they don't talk to each other.

But they are just two divisions of the same company (Samsung Electronics) and definitely they talk to each other. Otherwise how do you think Semi produces all those chips for Mobile?

 

[skunnykart]

Um I think Samsung is being very strategic with their sudden interest in opening a factory in the US. I think they know that Apple will not back down from these lawsuits and Apple, in the recent years, have become an iconic american company, though most of their products are made in china or other parts of the world, it's become an americana. You can go anywhere around the world, even in third world countries and they know about iPhones and Apple and immediately associate that with USA. So to say that Samsung just wanted to diversify their production is a bit weird.They know that investing in this factory, it gives them a bit of a leverage to try and fight apple maybe evenly here in the US. I won't be surprised if they bring that up to court soon, and say that if Samsung's products are banned and punished to pay apple…many americans in their american factory will have to be laid off and I think that could be very strategic on their end. Really, it'll be a win win for them, unfortunately but lets hope that they won't try and use that, if they haven't already tried, as a scapegoat.

This is bordering on an elvis-is-still-alive-esque mind numbing conspiracy theory.

Maybe just maybe Samsung is doing this because Texas is a pretty good place to do business? Maybe.

 

[alphaod]

Yeh but Atom? No thanks.

I'm just saying Intel would be a favorable chip manufacturer to Apple, not that Apple should switch to Intel chips on the smartphone. There would issues as well since Medfield is x86 which would be opening up a can of worms.

 

[Abazigal]

But they are just two divisions of the same company (Samsung Electronics) and definitely they talk to each other. Otherwise how do you think Semi produces all those chips for Mobile?

But likely still run by 2 different people in charge. I am sure the boss of the chip section won't be willing to forgo his high sales figures and fat bonuses just to let the boss of the phone division make a point.

 

[oliversl]

Too expensive, maybe in a couple of quarters. But I do think Apple has more cash than that amount.

So the options are: Samsung and TSMC, right?

market cap $74B. Buyout premiums typically range from 20-50%. Assuming a best case scenario of a 20% premium, you're looking at a $88.8B price tag.

 

[Alameda]

But they are just two divisions of the same company (Samsung Electronics) and definitely they talk to each other. Otherwise how do you think Semi produces all those chips for Mobile?

Not really. Samsung is an enormous company, and it's semi division operates independently. They won't stop doing business with a customer because of their dealings with a different division. They also sell finished semiconductors, but they'll still fab parts, even if they compete directly with their finished goods.

 

[hchung]

But they are just two divisions of the same company (Samsung Electronics) and definitely they talk to each other. Otherwise how do you think Semi produces all those chips for Mobile?

Doesn't actually matter.

The semi guys just need to know what kind of chips the market wants and designs for that. When the phone guys shop around for chips, the Samsung chips are considered just like TI's, Qualcomm's, nVidia's, etc. Yeah, internally there's probably something who thinks it'd be nice to be able to use stuff from the same parent company. But really, they're about as attached as Sony Consumer Electronics is to Sony Motion Pictures.

Conversely, did nVidia or TI need a phone division to make Tegra or OMAP? No.

 

[Alameda]

Too expensive, maybe in a couple of quarters. But I do think Apple has more cash than that amount.

So the options are: Samsung and TSMC, right?

Apple is not going to buy TSMC. They could build their own foundry for vastly less.

 

[e-coli]

It would require about 90 billion dollars to buy that company, assuming it was for sale. Which it isn't.

Everything in this world is for sale, given the right price.