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Apple reportedly cutting Samsung's share of next iPhone chip production

Apple reportedly cutting Samsung's share of next iPhone chip production


Cupertino to shift majority of manufacturing to Taiwan-based TSMC, according to Korean newspaper

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Like every iPhone processor before it, the A8 chip in Apple's next flagship phone will still be made by Samsung, but according to Korean daily Hankyung, the majority of the manufacturing will be handled by Taiwan Semiconductor Manufacturing Co. (TSMC). Citing industry sources, the newspaper reported Sunday that TSMC will be responsible for 60 to 70 percent of the manufacturing of the A8 processor, with the remainder going to Samsung. The South Korea-based company has reportedly signed a deal to manufacture the chip, though it the contract is estimated to cover just 30 to 40 percent of total production for the A8.

A report published last week revealed that Samsung manufactured the A7 processor in the recently released iPhone 5S, though recent reports have indicated that Apple is looking to lessen its dependence upon its rival amid ongoing legal battles and the race for smartphone supremacy. The company signed a deal with TSMC in June to begin chip production in 2014, though Apple was expected to rely on Samsung for the majority of manufacturing through next year. Today's report suggests that within Apple's supply chain, the transition is already underway.

Jeff Blagdon contributed to this report.