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In biggest blow yet, Apple to reportedly dump Samsung as chip supplier

Published Nov 28th, 2012 9:20AM EST
Apple Samsung Processors

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Apple’s (AAPL) huge success in the mobile space has benefitted Samsung (005930) in a number of ways. For one thing, it gave Samsung a step-by-step guide on how to improve its own smartphones, as revealed by an internal document used as evidence in a recent patent trial. It also made Apple the South Korea-based company’s biggest parts customer. Samsung had previously been estimated to pull in $13 billion in revenue next year through its various parts deals with Apple, but the companies’ ongoing patent fights have seemingly taken a toll.

Reports that Apple is shifting its component contracts away from Samsung continue to trickle out. Most recently, Apple is said to have moved from Samsung to Amperex Technology and Tianjin Lishen Battery for its iPad and MacBook batteries. Now, according to a new report, Apple is about to hand Samsung its biggest blow yet.

Apple will soon shift its CPU orders away from Samsung to the world’s No.1 chip maker, Taiwan Semiconductor Manufacturing Company, Digitimes’ unnamed sources claim. With a need for some 200 million mobile processors each year for its various iOS devices like the iPhone and iPad, such a shift would be devastating for Samsung.

Digitimes reports that Apple may make the switch from Samsung to TSMC as soon as next year.

Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.