Apple to replace Samsung, contracting TSMC for chip production

Apple has reportedly contracted Taiwan Semiconductor Manufacturing Company (TSMC) to manufacture chipsets powering its popular iPad and iPhone devices in a bid to bring down its reliance on Samsung. TSMC is the world’s largest independent chipset manufacturer and it will start manufacturing the A6X processor, which powers the fourth-generation iPad as a part of a trial production run, according to Taiwan’s Commercial Times.

This is the latest move signifying the deteriorating relations between Apple and Samsung amid intense rivalry between the two companies in the smartphone and tablet space. Apple is Samsung’s biggest client when it comes to internal components, especially displays, memory and chipsets. However, Apple maintains that Samsung “slavishly copied” its iPhone and iPad, which enabled Samsung to become the world’s largest smartphone maker and the biggest competition for Apple.

The two companies fought in courts across the world last year and Apple won the lawsuit in the US that directed Samsung to pay $1.05 billion in damages. Apple is now looking at increasing the damages while Samsung has appealed the verdict. Lawsuits aside, the deteriorating relationship with Apple could cost Samsung a fortune as Apple is known to have a large appetite for components, often drying up global inventories and pushing the costs up for rival companies.

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