Apple Considering Replacing Samsung as Chip Supplier

Though Apple and Samsung have maintained a business relationship throughout the series of lawsuits the two companies have filed against each other, it looks like that may change in the near future.

According to chip analyst Gus Richard at Piper Jaffray, Apple is looking for new chip partners, and will be incorporating the Taiwan Semiconductor Manufacturing Company’s (TSMC) 20-nanometer chips into future devices.

Apple is still under contract with Samsung, but as soon as the Cupertino-based company fulfills its obligations, it will move on to TSMC. This could mean disaster for other TSMC customers, who will be put on the back burner as the company works to produce chips in the quantities that Apple requires.

It will, of course, take some time for Apple to make the switch. “They’ll ramp down Samsung and ramp up TSMC. And some products will get some of one and some of the other,” said Richard. Apple will be transitioning to the new chip manufacturer early next year.

This will likely be a huge blow to Samsung, which has already been ordered to pay Apple more than a billion dollars after losing to Apple’s patent infringement claims in the United States.

[via CNET]

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