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Apple clinches TSMC chip manufacturing deal, continues to distance itself from Samsung

Continuing with their efforts to distance themselves from, and reduce their dependency on Samsung, Apple signs massive chip manufacturing deal with TSMC for next-generation, 20nm chips.

TSMC Apple chip deal

The WSJ reports that Apple has signed a chip manufacturing deal with TSMC (Taiwan Semiconductor Manufacturing Co.) to build chips for Apple’s future mobile devices. According to the agreement, TSMC will partially take over chip production for Apple in 2014, while Samsung will continue to supply a majority of the chips, until the end of 2014.

By the end of 2014, Apple hopes to have made them a little less reliant, and a little more distant from rivals Samsung. Of course, this is only a natural move that we saw coming, considering that Apple’s lawyers spend 90% of their time trying to sue Samsung for one patent infringement or another. This puts Apple in a dangerous position if anything were to “happen” to their chip supply, essentially crippling the production of all Apple devices (kaput).

Apple Samsung rivalry

The Cupertino has already freed itself off buying display panels from Samsung, with the company reportedly deploying Sharp’s IGZO in future devices. According to the WSJ report, talks between Apple and TSMC go as far back as 2010. Up until now, the deal wasn’t struck because TSMC had refused to reserve a factory dedicated to manufacturing chips solely for Apple. Our only concerns are that with TSMC now having signed up with Apple, will companies like AMD and Nvidia, who massively depend on TSMC for their graphics chips, face a crunch when they too release their next-generation hardware based on the 20nm manufacturing process? We sure hope not.

Source: WSJ

Preetam Nath
A 3rd year engineering student, Preetam Nath has a keen interest in following the smartphone and tablet sphere. He plays games on his favorite old PC when he's not doing anything. In the mornings, you can often find him at the gym.

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