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Apple Moves to Split with Samsung: Reuters

Samsung is also competing against Apple with a range of Android-based smartphones and tablets

Apple is having Taiwan Semiconductor Manufacturing Company (TSMC) produce next-generation chips for its mobile devices under a trial manufacturing run, according to a source Reuters says has knowledge of the matter.

It appears then that Apple means to wrench at least part of its business away from Samsung with which it's embroiled in a huge patent infringement battle.

Samsung is also competing against Apple with a range of Android-based smartphones and tablets.

Reuters suggests that orders could depend on yield rates but still look likely to start next year.

Samsung is the sole source of the ARM-based A5 chip used in Apple's iPad and Reuters says, "Apple faces several hurdles should it want to make a switch to TSMC, including patents and chip design issues as well as a push by Samsung to retain the business."

Actually it could be a nightmare for Samsung since Apple is its single largest customer. It may have to cut prices to keep Apple in the fold.

TSMC has some practice with the ARM chip and a $7.8 billion budget to update its technology and add capacity, the news service said. However, it looks like Samsung has some IP in the system design and memory packaging of the widgetry, which has Barclays Capital theorizing that TSMC will make what it calls A-X chips used for different products.

Apple is projected to move 108 iPads next year.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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