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Wednesday, January 02, 2013, 07:26 am
TSMC contracted to build A6X chips for Apple this quarter, pushing out Samsung
After years of rumors, Taiwan Semiconductor Manufacturing Co. is said to finally begin trial production of A6X chips for Apple's fourth-generation iPad this quarter, further marginalizing Samsung's role in Apple's supply chain.TSMC has been contracted to manufacture the A6X chip found in the latest iPad, according to Taiwan's Commercial Times, via French news agency AFP. A report published on Wednesday said trial production of the mobile chips will begin in the first quarter of the year.
Apple has long been rumored to be interested in switching its mobile chip manufacturing from Samsung to TSMC. The iPad maker, which was once Samsung's biggest customer, has been looking to remove Samsung from its supply chain as the two companies are engaged in a number of patent infringement lawsuits around the world.
Recent reports had indicated that Apple planned to have TSMC begin producing mobile chips in 2013. But some reports pegged a late 2013 start date as more likely.
With the latest rumor pegging TSMC's deal as only for trial production of the A6X, it's still unclear exactly when TSMC-produced chips could begin appearing in Apple's iOS devices. Currently, all of the mobile processors used in the iPhone, iPad, iPod touch and Apple TV are built by Samsung at its chip fabrication plant in Austin, Tex.
Switching its chip manufacturing from Samsung to TSMC is expected to be a complex transition that could take Apple as long as 18 months to complete.
Rumors that surfaced last month pegged TSMC has the most likely company behind a mysterious "Project Azalea" that numerous states are competing to win. The secretive project involves an unnamed semiconductor manufacturing company considering a new chip fabrication plant in four potential states: New York, California, Texas and Oregon.
The chip manufacturer behind the "Azalea" project is said to have ties to Apple, which has led numerous reports to suggest TSMC as the most likely company behind the mystery project. The states bidding for the contract have signed nondisclosure agreements, making the company unknown.
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Previous Comments View All
Before this is all said and done, Apple customers will feel the pain of the transition.
Samsung will make this as painful as possible, they have nothing to lose by compromising Apples production volume.
No. There is a contract to fulfil. It isn't painful at all. If there will be any pain it will be TSMC causing Apple. Not Samsung.
Note: The Story produces error on the front page.....
Your response is as if Samsung is an honorable company.
I do think they will fulfill their contract however whats to stop them making life hard for Apple and Apple customers.
They can come up with delays, questionable product runs ect.
We are not talking about two American companies that have to follow the same jurisdictions, just look at what Samsung does every time Apple releases a new product 6 months later Samsung has a knockoff.
They have the protection of the Korean Government so this would be a long drawn out court battle not unlike the iPhone.
I do not think Mr. Cook is looking for round two of legal action with Samsung rather I believe he would just like to separate from Samsung even it is a bit painful.
So back to Samsung, why would you think they would be any less dishonest with Apple beginning to pull away large volume purchases in 2013.
Is this related to the report from Citi citing cuts in orders from suppliers? Or are they 2 unrelated events altogether? 
Until TSMC actually have a US fab, this is bad news for the drive to build in the USA.
Before this is all said and done, Apple customers will feel the pain of the transition.
Samsung will make this as painful as possible, they have nothing to lose by compromising Apples production volume.
I have a feeling this will be a rough year for Apple with the transitions of suppliers and with the company still continue to find it's legs without Mr. Job's.
I am sure I am not the only one to notice that Apple seems to have lost a bit of luster to it's shine.
Product leaks prior to debut, extremely long leads time well past the holiday buying season after debut and in my opinion a drop in service quality I had come to expect from Apple.
I think Mr. Cook has a lot of issues to address before things get back to Apple normal.
It's the "Debbie Downers" of this world that are the problem, not Apple or Samsung. Self-fulfilling prophesies of doom and gloom have killed many businesses and economies.
Until TSMC actually have a US fab, this is bad news for the drive to build in the USA.
No.
Before this is all said and done, Apple customers will feel the pain of the transition.
Samsung will make this as painful as possible, they have nothing to lose by compromising Apples production volume.
Nothing to lose? You don't think Apple would sue them into oblivion if they violate their supply contracts?
In the long run, it is better to have multiple strong suppliers/companies than one strong, unscrupulous supplier.
No. There is a contract to fulfil. It isn't painful at all. If there will be any pain it will be TSMC causing Apple. Not Samsung.
Note: The Story produces error on the front page.....
... and what does that contract say. Nobody knows. Terms of the contract could allow Samsung to work to rule with no overtime or no increased production.
I do agree, though, that Apple could be opening up a bag of hurt if there is a transition to TSMC for its chips.
As far as Samsung being sued... that threat doesn't seem to bother them.
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Before this is all said and done, Apple customers will feel the pain of the transition.
Samsung will make this as painful as possible, they have nothing to lose by compromising Apples production volume.
I have a feeling this will be a rough year for Apple with the transitions of suppliers and with the company still continue to find it's legs without Mr. Job's.
I am sure I am not the only one to notice that Apple seems to have lost a bit of luster to it's shine.
Product leaks prior to debut, extremely long leads time well past the holiday buying season after debut and in my opinion a drop in service quality I had come to expect from Apple.
I think Mr. Cook has a lot of issues to address before things get back to Apple normal.