Samsung and Apple have enjoyed a paradoxical relationship over the past several years. Fiercely at odds in the courtroom and marketplace, Samsung has nonetheless remained a key part of Apple’s mobile chip manufacturing process. Rumors have persisted for months that Apple was looking to reduce its reliance on Samsung’s chip manufacturing business, but a new report from TechNews Taiwan suggests that the Korean company won’t have a role in the next iDevice processor not due to political maneuvering, but as a result of poor yields.
Samsung has reportedly been dropped from the supply chain for Apple’s upcoming A8 SoC due to low yields in its 20 nm manufacturing process. Taiwan Semiconductor Manufacturing Company (TSMC), which Apple has increasingly relied upon in order to distance itself from Samsung, was supposedly able to meet Apple’s requirements, and will now take on the vast majority of Apple’s A8 production.
Don’t count Samsung out for too long, however. Reports last year indicated that Samsung would split production of 2015’s expected 14 nm A9 processor with TSMC, and the sources speaking with TechNews Taiwan support that earlier claim, stating that Apple may start A9 production with TSMC’s 16 nm process and then roll Samsung’s 14 nm facilities into the mix with an eventual 50–50 split in orders.
While today’s report states that TSMC has had no issue in producing the A8, it is troubling to learn that Samsung has reportedly encountered difficulties. TSMC was already handling a reported 70 percent of A8 production so Samsung’s departure at this point shouldn’t have a significant impact on supplies of new iDevices later this year, but we’ll keep an eye out for more reports of production issues.
