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Apple Renews Contract With Samsung Over A-Series Processors
tlhIngan writes "In an interesting move since Apple decided to partner with TSMC a few weeks ago, the Korea Economic Daily is reporting that Apple has re-signed a contract with Samsung to produce the A-series chips Apple uses to power its iPads, iPhones and iPods. TSMC is still to produce chips for Apple, though Samsung is poised to take over from 2015."
Then where would Samsung turn to for their product designs?
Obvious exits are NORTH, SOUTH, and DENNIS.
Apple could do it, but it's a very expensive bet.
TSMC spent $9.4 billion on their latest 300mm fab, and it will be running pretty much 24/7/365 for many, many years. And if Apple broke ground tomorrow, it's still likely to be 3 years before the fab is fully built, equipped, staffed, qualified, and running at full speed. Unless Apple is sure it can get chip volume high enough to achieve real cost savings, it's probably not worth doing.
And by then the industry might have started transitioning to 450mm.
Apple is one of the few companies in the world who could drop that much out of actual cash-on-hand without blinking, but it's a very risky bet with potentially a lot more risk than reward.
Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)
http://www.lawrenceperson.com/
Seems like Apple in US...
Not even close. Samsung accounts for nearly 20% of the Korean economy. Much of the rest of the economy is controlled by one of the other four big chaebol (conglomerates). Samsung has their tentacles into every part of the economy and government. Many politicians have close links to company, and many are open about being in their pocket because "what's good for Samsung is good for Korea!" In the past, whenever Samsung wanted to enter a new line of business, the government would inform their incumbent competitors to either sell out, shut down, or face the consequences (audits, arson, arrest, etc.). Today it is just a bit more subtle.
Stop and think about this.
1) When was the last time Apple leaked plans like this?
2) The level of detail is too high for a 2015 part
3) Apple never gives the foundry product names
4) They also never specify time frames even to their foundry that far out.
5) Apple and Samsung are not on good terms.
6-17) See 5)
18) Apple is trying to get away from Samsung, cost is not an issue
19) Samsung is not any better than the other two common platform partners for tech.
20) Apple has signed with TSMC for 20nm
21) Losing Apple is a big deal for Samsung Semi, and enough of a big deal to be unpleasant for their stock
22) The source for the story is a Korean newspaper that is likely quite beholden to Samsung
You can draw your own conclusions from the above, mine is damage control on Samsung's part.
-Charlie
Apple: Rounded corners, square design! You loose sucka! Pay!
Samsung: *m-ok* here, have $450M.
Apple: Muahahaha!! *twirling mustache*
(1 year later in Apple board room....)
Engineer: It's a new design. More cores, cache and video on die.
Exec: Great! Send those plans to TI!
Engineer: Uh... it's not something they can do
Exec: But we are investing in America! Get TI on the phone!
TI: The design is outside the capabilities of our manufacturing limits.
Exec: *m-ok* get Samsung on the phone...
Samsung: Muahahahaha! *twirling mustache*
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Samsung takes it to a whole new level. Their CEO has been convicted of felonies twice (two separate occations) and had the verdict put aside because he was deemed too valuable to the Korean economy. American Corporations have power, but in Korea, Samsung, and to a lesser extent the other Chaebol, are truely above the law.