TSMC (Taiwan facility 001)

Last year, Apple reached an agreement with Taiwan Semiconductor Manufacturing Company (TSMC) to make processors for its iOS devices. The deal was part of a larger effort by the iPad-maker to reduce its reliance on Samsung.

But the move may not last long. Citing supply chain sources and KGI Securities analyst Michael Liu, Reuters is reporting that Apple is looking to shift production of its 14-nanometer next-generation chips from TSMC to Samsung…

Here’s more from the Reuters report:

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) is likely to lose orders for its next-generation chips from Apple Inc and Qualcomm Inc to rival Samsung Electronics Co Ltd, according to an analyst and Taiwanese media.

TSMC will be supplanted by Samsung in the production of 14-nanometre smartphone chips for Apple and Qualcomm beginning in the second half of 2015, KGI Securities analyst Michael Liu said in a note to clients issued late on Wednesday after a TSMC investor conference. 

The report adds that Qualcomm, who is also one of Apple’s supplier partners, has already begun working with Samsung on the new chips and has even started placing orders for them. TSMC shares fell 4% this morning following the news.

It’s worth noting that TSMC is currently shipping chips to Apple for the upcoming iPhone 6, which is slated to launch this fall. The company’s move to Samsung will happen in 2015, for the 14-nanometer A9 chip expected in the iPhone 6s.

  • abhi0n0nakul

    iPhone 6 chip then really might have problems…

    • Lol

      As did all the previous chips that were made by Samsung…oh wait…they didn’t….Oh my bad you were just desperate for upvotes.

      • sopaipas

        1-0

      • Kyle

        You didn’t get it right? S/He said the i6 chip might have problems because now, they’re being produced by TSMC. But the A9 will be made by Samsung again, leading to the point that TSMC might not be as satisfying as being hoped so Apple shifts back to Samsung, where they are kinda reliable in Chip-making. So s/he “owned” TSMC, not Samsung.

  • tariq

    Sooo, Samsung will be helping apple??

    • Rowan09

      Samsung will be getting paid by Apple.

    • @dongiuj

      Apple always has help from Samsung.

  • gittlopctbi

    So amazing to me how two companies who seem to be continuously in court suing each other continuously find ways to do business together. So interesting.