Samsung May Be About to Lose Apple's Business

Apple is likely moving production of its A6 ARM processor away from Samsung and instead will have its chips produced by TSMC, reports ArsTechnica.

Samsung was recently sued by Apple for copying the iPhone and iPad design. The feud has grown increasingly ugly with both companies suing each other in multiple markets.

Apple very likely sees moving production to a non-competitor as a strategic business move. Dan Heyler, a semiconductor analyst with Merrill Lynch in Taipei, told the China-based Commercial Times newspaper on Friday that TSMC will most likely be producing "A6" processors for Apple, a next-generation ARM-based design, in 2012. That jibes with what Ars has heard from a plugged-in source - that the chatter on the foundry grapevine about an impending Apple/TSMC deal is growing deafening.


Samsung is currently producing A5 processors on a 45nm process. It's rumored that Apple is looking to move to a 28nm process with TSMC. Intel has also made it clear that they would like to have Apple's business.

Ars suggests that chips may be first step; however, Apple may be looking to cut all of Samsung's components out of its supply chain.

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