Recent report suggests that Apple might be planning to shift production of its 14-nanometer next-generation A-series mobile device chips for iPhone from Taiwan Semiconductor Manufacturing Company in favour of Samsung by next year.
According to Reuters, TSMC, the Cupertino’s current manufacturing partner, which had already begun shipping A-series chips for the company’s alleged “iPhone 6” last week, will be succeeded by Samsung for the production of next-generation smartphone chips to begin in the second half of 2015.
The report cites a note sent by KGI Securities analyst Michael Liu to his clients after he attended a TSMC investor conference on Wednesday. Liu said that Samsung will supplant TSMC as the main manufacturer of advanced 14-nanometer smartphone chips for Apple and Qualcomm with effect from second half of 2015.
Apple’s deal with TSMC for the production of smartphone chips, last year was reportedly agreed as a part of the iPad maker’s bid to decrease dependence on Samsung for iOS device components.
TSMC had been manufacturing 20-nanometer chips for the Cupertino for a while now and is also currently working on 16-nanometer chips.
Another Taiwanese publication also hinted that Qualcomm has already placed orders for the next-gen silicon with Samsung. However, evidence of orders placed by Apple has not yet been reported.
Shares of Taiwan Semiconductor Manufacturing Co Ltd (TSMC) fell as much as 6 percent after reports of loss of orders from Apple Inc and Qualcomm Inc surfaced in the media.
