Telecom & Wireless

Apple Reducing Samsung’s Role in Chips Supply

It appears that the left hand at Apple Inc. (NASDAQ: AAPL) is finally figuring out what the right hand is doing. For the past year or so, Apple has taken every opportunity it could to drag Samsung Electronics into court somewhere in the world charging the Korean company with infringing Apple’s intellectual property rights. At the same time, the Cupertino company depended on its partnership with Samsung’s semiconductor manufacturing division to produce the chips for its iPhone and iPad devices.

No more, according to the Korean Times. Apple reportedly did not use Samsung to help develop the A6 processor for the iPhone 5, instead using Samsung strictly as a foundry to manufacture the chips. A Samsung executive said:

Samsung’s agreement with Apple is limited to manufacturing the A6 processors. Apple did all the design and we are just producing the chips on a foundry basis.

One of Samsung’s to chip designers went to work for Apple last week, indicating that Apple likely plans to minimize even further its relationship with Samsung’s foundry.

Apple recently signed a deal with Taiwanese chipmaker TSMC to produce the next generation of A-series chips. Samsung is likely to continue to manufacture flash memory for Apple, but that business, too, could begin to dry up as Apple broadens its supply chain.

Neither Apple nor Samsung had any official comment on the report.

Apple’s shares are essentially flat at $629.99 shortly after noon today, in a 52-week range of $363.32 to $705.07.

Paul Ausick

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.