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Published in PC Hardware

Apple knifes Samsung

by on11 February 2016

Puts all 10nm eggs in TSMC’s basket

Fruity cargo cult Apple has turned on its partner Samsung and given the contract to produce 10-nano application processors (AP) to TSMC.

According to the Electronic Times the move has put Samsung into a state of emergency system to prevent declination of rate of operation of factories.

The outfit had been aiming for an all-out-war in 14-nano foundry business by going after middle-rank chip businesses in China and Taiwan. Now it has to focus its capabilities on maintaining supplies of Qualcomm’s 10-nano. Samsung is hoping to take back Apple’s contracts when it comes up with its 7-nano node.

Apple has entrusted TSMC with all production of next 10-nano AP which it has dubbed the A10 which is expected to be released in autumn. TSMC will start mass-production system of 10-nano chips starting from June.

Apparently Samsung found out about the deal through back channels in the second half of last year.

A Samsung deep throat said that normally cooperation for design and production takes place a year before, Apple had not mentioned it. Samsung had checked whether or not a rumour that all of Apple’s supplies have gone over to TSMC was true.

Samsung is fairly sure it can develop 7-nano process first and it might claw back Apple’s business. The 7-nano process is also a process that will be maintained for long time.

Apple has done this to Samsung before when it gave TSMC all of its production of 20-nano A8 Chips that were installed in iPhone6 series. This hurt Samsung Electronics significantly in 2014.

It took back half of Apple’s supplies by quickly establishing mass-production system of 14-nano process. It was also helped out by the fact that Qualcomm gave Samsung production of its 14-nano Snapdragon 820 Chips.

Last modified on 11 February 2016
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