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.