Samsung's Exclusive Contract for iOS Device Chips Expiring in June as A7 for iPhone 6 Heads to TSMC?

[MacRumors]

Taiwan's Economic Daily News reports [Google translation, via Mac Otakara] that "high-ranking officials" at Samsung have disclosed that the firm has yet to receive orders for an A7 chip to be used in the iPhone 6 next year. The lack of contact with Apple about an A7 chip is reportedly leading to speculation at Samsung that Apple has shifted its orders for the chip to Taiwan Semiconductor Company (TSMC).

According to the report, Apple and Samsung are currently operating under an exclusive supply contract for A-series chips, but that contract is set to expire in June. With that expiration, Apple will be able to shift production to TSMC, which is pressing forward on plans for its smaller and more efficient 20-nanometer process. TSMC is said to be about two months ahead of schedule on beginning installation of production equipment for 20-nm chips.

Today's report is in line with previous rumors claiming that Apple and TSMC have essentially completed the initial design for a 20-nm A7 chip with shipments currently scheduled for early next year.

As we noted previously, assuming that rumors of a 2014 launch for a 20-nm A7 chip are accurate, Apple will need to use a different solution for its 2013 iOS device models, with options including a die shrink of the current A6 chip from 32-nm to 28-nm, a more substantially revamped A6 chip, or an early A7 chip based on a 28-nm process.

Article Link: Samsung's Exclusive Contract for iOS Device Chips Expiring in June as A7 for iPhone 6 Heads to TSMC?

 

[gto55]

28nm A6(X?) for iPad Mini Retina

 

[Consultant]

Hope this is true. Once Apple moves manufacturing of essential parts to other companies, Samsung will no longer have the benefit of figuring out Apple's iOS roadmap.

 

[please22]

Hallelujah

 

[ThunderSkunk]

That is good news.

 

[jthrasher]

let this be a lesson to you Samsung. Don't bite the hand that feeds you

 

[navajarunner]

Lol..... TSMC...

 

[Squilly]

I'm still shocked Samsung has been supplying Apple for the past year with the lawsuit and all. "Apple needs Samsung and Samsung needs Apple" is BS.

 

[Shrink]

I'm still shocked Samsung has been supplying Apple for the past year with the lawsuit and all. "Apple needs Samsung and Samsung needs Apple" is BS.

Let me guess...Apple doesn't need anybody, right??

The fact that Samsung is an important Apple supplier means nothing...Apple rules the world, so any supplier would kill to supply Apple...right?

 

[Born Again]

It's amazing to be for all the hate that Samsung gets they provide the brains of our beloved iPhones.

Let's all give them a thank you!

Thank you Samsung for working with Apple!

 

[nick_elt]

That is good news.

please explain why? just because Samsung isnt making it? you know whats really funny is its prob the only part of the iphone that's made in the US and it will prob be made offshore now.

 

[Pressure]

I'm still shocked Samsung has been supplying Apple for the past year with the lawsuit and all. "Apple needs Samsung and Samsung needs Apple" is BS.

It's called an iron-clad contract.

 

[polymersayb]

Hopefully the quality of the chips doesn't suffer as a result (I'm thinking of the ghosting in the non-Samsung retina displays). Apple doesn't need any more bad publicity and users will not sympathize with the business/political explanation.

 

[samcraig]

Hope this is true. Once Apple moves manufacturing of essential parts to other companies, Samsung will no longer have the benefit of figuring out Apple's iOS roadmap.

Do tell me how they can figure out a roadmap based on a chip order?

Do you have any idea how manufacturing works?

ETA: I'm also not sure why some people are so eager for Samsung to stop supplying parts to Apple. Aren't their screens and SSDs/etc notably the ones people "fight" to get vs macs and devices that have other competitors components. I'm pretty sure this forum is riddled with people who have spoken how samsung's parts are superior.

 

[I WAS the one]

I really hopes Apple turn into a stable company and last many years to come. it will be sad see Apple going down after all things has done to improv the technology we live today.

 

[GenesisST]

Business is not emotional (for the most part), not like fans (on ALL sides) in forums...

Me... I don't care... as long as Apple products get the best parts available. Well I care in the sense that I just hope they don't go to TSMC only with sub-par parts.

And am I the only one that sings the Marines' Hymn every time is see TSMC?

"From the Halls of Montezuma,
To the shores of Tripoli..."

 

[mabhatter]

I'm still shocked Samsung has been supplying Apple for the past year with the lawsuit and all. "Apple needs Samsung and Samsung needs Apple" is BS.

Apple has a PREPAID contract with Samsung for parts. If Samsung didn't deliver NOBODY ELSE would buy from Samsung for breaking their manufacturing contract without cause.

This is a case where Samsung's parts division is happily meeting Tim Cook's needs... And their Cell phone division is publicly bad-mouthing their best paying customer. It is ENTIRELY a MANAGEMENT PROBLEM... Mr. Samsung needed to bust some heads... But Korean manufactures are "too big to fail" and all the minions know that.... So "the boss" isn't really THE BOSS.

 

[Oletros]

Hope this is true. Once Apple moves manufacturing of essential parts to other companies, Samsung will no longer have the benefit of figuring out Apple's iOS roadmap.

Still trying to figure how a CPU design can lead to knowing iOS roadmap.

----------

Apple has a PREPAID contract with Samsung for parts. If Samsung didn't deliver NOBODY ELSE would buy from Samsung for breaking their manufacturing contract without cause.

And Apple couldn't break the contract? Do you have any information about being a PREPAID contract?

 

[szw-mapple fan]

First good news in macrumors for…a long time

 

[Squilly]

Let me guess...Apple doesn't need anybody, right??

The fact that Samsung is an important Apple supplier means nothing...Apple rules the world, so any supplier would kill to supply Apple...right?

Samsung was fined $1 Billion by them (well, $500 million).

 

[chrmjenkins]

How is an A7 'early' if they have no public roadmap?

Starting in June would certainly put it in line with an early Fall launch as last year.

 

[the8thark]

Thank you Samsung for working with Apple!

That was sarcasm I hope.
It's more like, a necessary evil working with samesung.

 

[Consultant]

Do tell me how they can figure out a roadmap based on a chip order?

Do you have any idea how manufacturing works?

Yes perfectly. A company needs to tell its supplier what it wants and when it wants it, so the supplier can have the appropriate amount of production capacity online.

So Samsung can figure out when Apple is launching the next product, and advertise right before that for a product "coming out later this year".

 

[nick_elt]

a fanboys wet dream....




and nothing more
(apart from more american jobs lost)

 

[samcraig]

Samsung was fined $1 Billion by them (well, $500 million).

No. The courts fined them. And not a penny has been collected. In fact - it's possible none will.