Apple rumor suggests chip production pulled from Samsung

Shane McGlaun - Feb 18, 2014, 6:25 am CST
Apple rumor suggests chip production pulled from Samsung

A new Apple rumor is floating around today that could affect Samsung. This new rumor claims that Apple is set to take the chip production that Samsung currently operates and move it to another provider. Apple pulled some chip production from Samsung back in 2012 and sent Samsung stock prices plummeting.

In 2012, Apple placed chip orders with Elpida rather than Samsung and Samsung lost $10 billion off its market value. The new rumor suggests that Apple will be moving the production of its A series processors away from Samsung and start production up with TSMC.

The reason is said to be some concerns over low yields with Samsung’s 20nm process for the next generation A8 processor. TSMC has had success with its 20nm process being described as smoother than expected.

The move will certainly hurt Samsung, whether or not it will have the same effect on market value as we saw back in 2012 remains to be seen. I continue to be surprised Apple uses Samsung since the two are bitter rivals on the electronics market and are seemingly constantly fighting in court. This rumor reportedly comes from the supply chain and is unconfirmed at this time.

SOURCE: MacObserver

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