In line with earlier reports, Apple (AAPL) is now said to be making moves to shift manufacturing of its mobile processors away from rival Samsung (005930). In light of the ongoing war being waged by the two electronics giants in courtrooms around the world, Apple is reportedly beginning to move its chip manufacturing business to a new supplier as it looks to sever ties with its South Korean rival. Apple’s new foundry partner, top global chip maker TSMC, will take on Apple’s chip business beginning with the current-generation A6X chip as soon as this quarter, Commercial Times reports.
Additional manufacturing will shift over time; some estimate that it will take between 12 and 18 months for Apple to fully move manufacturing of its mobile processors away from Samsung.
Apple was previously estimated to spend as much as $13 billion on Samsung-built components in 2013 and early speculation suggested the two companies would be able to keep their rivalry confined to the courtroom. While the loss of Apple’s business appears to be a huge one — Apple is currently Samsung’s top component customer — a number of industry watchers have suggested that the impact on Samsung will be minimal.
