Semiconductors

Gartner: Samsung supplants Apple as #1 chip buyer

Ed Sutherland ∙ January 23, 2013

South Korea's Samsung has another reason to crow. After enduring talk that rival Apple would drop its rival for TSMC, demand for Samsung smartphones and tablets made it the largest customer of chips in 2012, replacing the iPhone and iPad maker in the worldwide chip eating challeng, reports said Thursday.

A Gartner report on semiconductor purchases also gives a rare glimpse into how much Apple is spending on chips for its smartphones and tablet devices. According to the researcher, Samsung increased spending on chips nearly double that of the Cupertino firm...

Apple may have ordered ‘very large volume’ of chips from TSMC

Christian Zibreg ∙ January 22, 2013

Morris Chang, Chairman and CEO of the world's largest semiconductor foundry, Taiwan Semiconductor Manufacturing Company (TSMC), said in a recent earnings call that his company's 20 nanometer process technology will outsell the existing 28 nanometer tech in its first two years. “Enough discussions have taken place, with enough customers who have large requirements (on 20nm), to lead us to believe that the volume will be very large”, he said without specifically mentioning Apple.

Of course, TSMC also makes chips for Qualcomm, Nvidia and other tech giants, but recently rumors have swirled that Apple is about to drop Samsung as a chip supplier and turn to TSMC, which will invest $9 billion this year while spending even more in capital expenditure in 2014 as it moves toward the more advanced 20nm and 16nm process technologies...

Volume production of Apple silicon looms as TSMC’s 2013 wafer shipments triple

Christian Zibreg ∙ January 18, 2013

Following up on talk that Taiwan Semiconductor Manufacturing Company (TSMC) is prepping to manufacture Apple’s A6X processor and whispers of Tim Cook & Co. negotiating a deal with the foundry to make mobile chips for iOS devices on its 20 nanometer process technology, China Times now quotes Chairman and CEO Morris Chang's words that TSMC is close to achieving a hundred percent market share on its 28nm process technology.

But why have TSCM's wafer shipments all of a sudden tripled, allowing it to achieve a virtual monopoly on the 28nm silicon? That's where the Apple link comes into full view...

TSMC contracted to fab a cutting-edge chip for a ‘breakthrough’ Apple device

Christian Zibreg ∙ January 16, 2013

Samsung for the time being remains an exclusive maker of the Apple-designed engine that powers iPhones, iPads and iPods. Apple's chips are being fabbed on Samsung's High-κ metal gate 32 nanometer process at its $14 billion semiconductor plant in Austin, Texas. But not for any much longer.

We've been hearing lots of rumors lately that rival Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest independent semiconductor foundry, has entered Apple's supply chain with trial production of Apple's A6X processor.

As the iPhone maker is reportedly accelerating plans to make a jump to TSMC for all of its mobile chips, now comes word that the Taiwan foundry will pretty soon start building on its 20 nanometer process technology a next-gen processor for a "breakthrough" Apple device...

TSMC CEO insists US chip plant has nothing to do with Apple

Christian Zibreg ∙ December 21, 2012

Apple has lately been rumored to have been moving some production lines to the United States amid whispers of a $10 billion silicon manufacturing facility being considered in the country. Various reports mention both New York and Oregon for this project, code-named Azalea.

And because of its reported $10 billion construction cost, there are some who suspect Project Azalea is a chip-making plant for Apple’s products aimed at replacing Samsung. Remember, the Galaxy maker semiconductor arm's $14 billion Austin, Texas facility exclusively churns out Apple-designed mobile chips that serve as the engine for the iPhone and iPad.

The rumor-mill has been adamant that Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest independent semiconductor foundry, will run the upcoming US facility in co-operation with Apple, but now TSMC CEO has issued a somewhat weak denial...

Project Azalea: a $10 billion Apple mobile chip plant

Christian Zibreg ∙ December 12, 2012

We've suspected for a while now that Apple's been making moves ultimately aimed at taking its chip contract elsewhere. Clearly Apple ain't interested (any longer than it needs to) in letting Samsung enjoy an early peek at the technological solutions developed for the engine that drives its iPhones and iPads.

Currently, all of Apple's in-house designed A-series processors are being built exclusively by Samsung in its $14 billion chip plant in Austin, Texas.

The iPhone maker was also rumored to be contemplating a switch to Intel's x86 mobile chips for iPads, as outrageous as the very thought of it may seem.

But what if Tim Cook and his newly-minted chief of Technologies and long-time hardware expert Bob Mansfield have a radical solution in mind? A report Wednesday has it that the California firm could be seeking to invest up to ten billion dollars into a dedicated chip fab in New York, presumably in order to take control of its silicon destiny...

Apple accelerating plans to make a jump to TSMC for mobile chips

Christian Zibreg ∙ December 10, 2012

Last time we heard, Apple was going to move its mobile chip production from Samsung's $14 billion Texas facility to Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest dedicated independent semiconductor foundry, some time in 2014. But according to Taipei Times, the company could make the jump earlier than expected as it's now looking to tap TSMC's fabrication capability to make next-gen processors for iPhones and iPads as soon as the second quarter of 2013, using TSMC's 28-nanometer process...

Apple seen hiring dozens of former Texas Instruments engineers

Cody Lee ∙ December 3, 2012

Earlier this year, Texas Instruments announced a major shift in its business strategy: it's going to be moving its focus away from smartphone and tablet processors, and towards embedded applications like in-car computer systems.

As a result of this new strategy, the company said that it would be laying off a staggering 1,700 employees — one of the biggest RIFs of the year. But don't feel too bad, the word is that some of them have found new homes at Apple...

Apple’s rumored chip switch understood to upset hotshots Nvidia and Qualcomm

Christian Zibreg ∙ Updated April 10, 2018

Apple's been distancing itself from Samsung for quite some time, by purchasing components elsewhere. The company recently added new display and battery providers to its supply chain.

This summer, it started increasing spending on Elpida memory chip at Samsung's expense.

But as Apple increasingly sources major components from other suppliers, it has yet to make a switch to a non-Samsung silicon foundry. According to the latest chatter from Asia, Tim Cook and Co. remain adamant to take Apple's chip making contract to Taiwan Semiconductor Manufacturing Company (TSMC) as early as possible.

But though TSMC, the world's largest dedicated independent semiconductor foundry, has enough capacity to make the 200 million+ processors Apple needs annually for iPhones, iPads and iPods, such a move bears a significant risk of upsetting TSMC's major buyers such as Nvidia and Qualcomm...

Intel lets go of its CEO amid mobile struggles

Christian Zibreg ∙ Updated February 27, 2017

Intel, the world's #1 chip maker, has been trying and failing for years to replicate its PC leadership status in mobile. Today, the company issued an unexpected update, saying its long-time CEO Paul Otellini will be retiring in May 2013. Though the semiconductor giant insists this is just "an orderly leadership transition", Otellini's successor has not been named and Intel said it will consider internal and external candidates for the job. Intel currently supplies processors for Apple's Macs, but that could change if the rumor-mill is to be trusted...

Samsung now more assertive in price negotiations over Apple’s hostile tactics

Christian Zibreg ∙ November 16, 2012

Apple appears to be resolving its legal woes with other Android backers such as HTC, reportedly seeking arbitration and even mulling a global settlement with Google's subsidiary Motorola Mobility. On the other hand, the company is to this date entangled in a complicated web of patent disputes with Samsung, from whom it sources components for iOS devices.

And as the frenemies seek to add new gadgets to their respective list of infringing products, one analyst believes Apple's hostile tactics has forced the Galaxy maker to divert from its original business strategy. As a result, the component arm of the South Korean conglomerate has become "more assertive" in price negotiations with Apple, refusing to invest billions of dollars in plants and manufacturing technology without long-term commitment from Apple...

Samsung denies massive chip price hike that could hurt Apple’s margins

Christian Zibreg ∙ November 14, 2012

Monday's news by South Korean newspaper Chosun alleging Samsung was jacking up prices of Apple mobile chips by as much as twenty percent in order to get even with its largest component buyer for losing more than $1 billion in damages in the massive Apple v. Samsung patent case is untrue, an unnamed Samsung executive reportedly told a Korean newspaper Wednesday. A-series of chips that power iOS devices are designed by Apple and built exclusively by Samsung at its sophisticated facility in Austin, Texas...