Samsung And Apple Lock Horns Again, This Time on Chip Supply Dispute

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Samsung And Apple Lock Horns Again, This Time on Chip Supply Dispute

Samsung vs Apple battles are now a daily affair with both firms not giving up and going aggressively at each other. It is a well known fact that Samsung has been the largest component supplier to Apple for a long time. But as per the reports, the multibillion dollar chip supplier relationship is going to end soon. This news is coming in from sources close to Samsung HQ in South Korea. 

As per the sources, Samsung is no longer designing the chips A6 used in iPhone5. They are just manufacturing chips based on the design given Apple. There are unconfirmed reports that Apple is planning to give the manufacturing of its updated A7 chips to a Taiwanese company, TSMC, which is world’s largest chip producer. 

However it is still not clear whether TSMC has officially confirmed to take up this task of moving the Apple chip foundry from Samsung to their home base. This was reported by CNET also on Friday. However neither Apple nor TSMC have confirmed this development. 

The break up in supplier relationship may not be limited to just A6 chips alone. Samsung may be soon asked to cease the supply of memory chips, flash chips and display units too. This is expected to impact Samsung financially too as they will be losing their largest client in chip business. Samsung recently lost out and was asked by the court to pay billions of dollars as penalty for making patent infringement.

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