Rumor: Samsung not churning out Apple’s A8 chip for the next iPhone and iPad due to low yields

Apple A8 (teaser 001)

Apple’s upcoming A8 mobile processor is of course expected to power the next wave of iPhone and iPad devices, but the advanced chip apparently won’t be manufactured by Samsung, which fabbed all of A-series processors since the iPhone 4’s 2010 A4 chip.

According to a new report out of China, Samsung is experiencing yield issues and in turn has dropped out of Apple’s A8 chip production…

According to a story published by TechNews Taiwan and highlighted by MacRumors, Samsung is experiencing significant issues producing the chip on its 20-nanometer process.

That must be music to the ears of rival Taiwan Semiconductor Manufacturing Company (TSMC), which currently builds Touch ID fingerprint sensors, as that company was reportedly able to meet Apple’s demands and will now get to exclusively build the A8.

The story goes on to mention that TSMC may also get to build the 2015 A9 chip on its 16-nanometer process, with Apple possibly adding Samsung as a supplier at a later stage, once the Galaxy maker proves it can build the chip on its 14-nanometer process.

Corroborating last summer’s report by The Wall Street Journal, DigiTimes recently asserted that TSMC should account for the bulk of A8 production going forward.

It is no secret that Apple is looking to take its lucrative chip-making contract elsewhere amid the ongoing legal dispute with Samsung, its key supplier, over patent infringement.