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

Discussion in ' News Discussion' started by MacRumors, Apr 2, 2013.

  1. MacRumors macrumors bot


    Apr 12, 2001

    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?
  2. gto55 macrumors 6502a


    Mar 14, 2010
    Tel Aviv
  3. Consultant macrumors G5


    Jun 27, 2007
    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.
  4. ThunderSkunk macrumors 68020


    Dec 31, 2007
    Colorado & Ontario
  5. jthrasher macrumors member

    Mar 27, 2002
    let this be a lesson to you Samsung. Don't bite the hand that feeds you
  6. navajarunner macrumors regular


    Feb 3, 2009
  7. Squilly macrumors 68020


    Nov 17, 2012
    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.
  8. Shrink macrumors G3


    Feb 26, 2011
    New England, USA
    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?

  9. Radio macrumors 68000

    Mar 5, 2012
    Central California
    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! :)
  10. nick_elt macrumors 68000


    Oct 28, 2011
    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.
  11. Pressure macrumors 68040


    May 30, 2006
    It's called an iron-clad contract.
  12. polymersayb macrumors regular

    Dec 12, 2012
    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.
  13. samcraig macrumors P6

    Jun 22, 2009
    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.
  14. I WAS the one macrumors 6502a

    I WAS the one

    May 16, 2006
    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.
  15. GenesisST macrumors 68000


    Jan 23, 2006
    Where I live
    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..."
  16. mabhatter macrumors 6502a

    Jan 3, 2009
    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.
  17. Oletros macrumors 603


    Jul 27, 2009
    Premià de Mar
    Still trying to figure how a CPU design can lead to knowing iOS roadmap.


    And Apple couldn't break the contract? Do you have any information about being a PREPAID contract?
  18. szw-mapple fan macrumors 65816

    szw-mapple fan

    Jul 28, 2012
    First good news in macrumors for…a long time:rolleyes:
  19. Squilly macrumors 68020


    Nov 17, 2012
    Samsung was fined $1 Billion by them (well, $500 million).
  20. chrmjenkins macrumors 603


    Oct 29, 2007
    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.
  21. the8thark macrumors 68040


    Apr 18, 2011
    That was sarcasm I hope.
    It's more like, a necessary evil working with samesung.
  22. Consultant macrumors G5


    Jun 27, 2007
    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".
  23. nick_elt, Apr 2, 2013
    Last edited: Apr 2, 2013

    nick_elt macrumors 68000


    Oct 28, 2011
    a fanboys wet dream....

    and nothing more
    (apart from more american jobs lost)
  24. samcraig macrumors P6

    Jun 22, 2009
    No. The courts fined them. And not a penny has been collected. In fact - it's possible none will.

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