Apple Shifting Chip Production from Samsung to TSMC; Could Lead to Shortages

Discussion in 'Android News' started by dgstorm, Nov 28, 2012.

  1. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    While it was probably inevitable that Apple would pull away from Samsung as their primary manufacturer for their chips and displays because of the ongoing legal feud between the two companies, the potential ramifications could be more widespread and damaging than we could have guessed. New rumint from DigiTimes seems to confirm previous rumors that Apple is dumping Samsung and shifting to TSMC for their primary chipset production.

    Besides the fact that this move would obviously diminish revenue for Samsung, the potential ripple effect could cause massive shortages for other manufacturers as well. Many companies, like Qualcomm and NVIDIA use TSMC as their primary chipset production fab. If Apple switches over to TSMC, it is unlikely the company will be able to keep up with chipset demand from Apple and keep their commitments with the other companies as well. In fact, TSMC may end up dedicating one or two whole fabs to just Apple chip production alone. This move would leave a shortage for a wide variety of other manufacturers. Here's a quote from the DigiTimes article,

    In the past, Apple tried to get TSMC to offer them exclusivity with a $1 Billion dollar incentive, but TSMC refused, not wanting to keep all their eggs in one basket. Still, if Apple simply demands massive production from the company, it would behoove them to try and keep up, so Apple could end up simply taking more of the pie than the other manufacturers who use TSMC. While one would like to think that TSMC would keep things as fair and balanced as possible, when it comes to the bottom line, they will likely focus their energies in favor of whomever offers them the greatest volume.

    Source: DigiTimes
  2. johnomaz
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    johnomaz Well-Known Member

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    LOL, more lack of supply. Maybe this time it will be a real shortage and not a fake one to create buzz about a product. Also, I hope the move gives them sub par quality chips.
  3. akhenax
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    akhenax Well-Known Member

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    Don't bite the hand that feeds you.
  4. trestevenson
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    trestevenson Active Member

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    If Apple takes the lion's share of TSMC's chipset supply, what's to stop Nvidia, Qualcomm, etc. from switching to Samsung for theirs?
  5. LoudRam
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    LoudRam Well-Known Member

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    That's what I was thinking too.

    Sent from my HTC Rezound using Droid Forums
  6. riko540
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    riko540 New Member

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    That's what I thought as well.
  7. xtor
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    xtor Well-Known Member

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    Samsung makes stuff for apple?, after the first lawsuit they should have told apple to piss off

    point of origin