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Apple may partner with TSMC for A5 production in potential blow to Samsung

Apple has allegedly inked a deal with chipmaker Taiwan Semiconductor Manufacturing Co. to produce the A5 chip for the iPad 2, a move that is seen as a potential loss for Samsung.

Apple is rumored to have entered a foundry agreement with TSMC to build the A5 processor, according to EETimes. In addition to powering the new iPad 2 set for release on Friday, Apple's custom dual-core A5 processor is also expected to power the anticipated iPhone 5, expected to debut this summer.

For its current devices, Apple partners with Samsung for production of the A4 processor. Last year's first-generation iPad featured two Samsung dies stacked inside the A4 chip.

Apple is expected to spend $7.8 billion on components from Samsung alone in 2011, for parts including liquid crystal displays, processors and NAND flash memory chips in mobile devices including the iPhone and iPad. The deal would make Apple the largest customer of Samsung.

The EETimes report said Apple is making the switch for three reasons, one of them being the fact that Samsung competes with both the iPhone and the iPad with its own devices. Last year, Samsung released the Galaxy S smartphone to compete with the iPhone 4, and the Galaxy Tab to take on the iPad. Both Android-powered product lines will receive updates this year.

Apple is also said to be exploring TSMC because it has the highest yielding 40 nanometer processor in the world, along with the most 40 nanometer capacity. The report said it is now "unclear" whether Samsung will play any part in building the A5 chip for Apple in the future.

33 Comments

MacPro 19 Years · 19862 comments

Of course Apple should spread work across their suppliers, Samsung aren't the only ones in this Galaxy after all.

melgross 21 Years · 33664 comments

I don't trust TSMC. Both ATI and Nvidia have had serious problems with them for years. They should be on a smaller process now, but it failed. This is common for them.

damn_its_hot 16 Years · 1213 comments

Quote:
Originally Posted by digitalclips

Of course Apple should spread work across their suppliers, Samsung aren't the only ones in this Galaxy after all.

Darn. Beat me to it - maybe Apple is tired of this game and wants to kick some S?

damn_its_hot 16 Years · 1213 comments

Quote:
Originally Posted by AppleInsider

Apple is also said to be exploring TSMC because it has the highest yielding 40 nanometer processor in the world, along with the most 40 nanometer capacity. The report said it is now "unclear" whether Samsung will play any part in building the A5 chip for Apple in the future.

If their history is that unstable I doubt that Apple will bet the farm on them - can't see Samsung out completely. Keeps Apple in a better position to have competitors than single suppliers I would think.

tipoo 15 Years · 1124 comments

What fabrication process is this SoC on, anyone know? Still 45nm?