Apple A7 Processor Chips For iOS Won't Be Made By Samsung

By Hilda Scott , May 02, 2013 10:46 PM EDT

Apple is currently developing its next A7 application processor chips for use with its iOS devices expected to be released during the first half of next year. Rumor has it that Apple is working with a company in Taiwan to manufacture its processors.

Samsung, not too happy with Apple's decision to cut ties, is expected to broaden its growth and maintain a partnership with chip maker NVIDIA.  Samsung may increase chip orders with the company to continue its growth.

''Apple is sharing confidential data for its next A7 system-on-chip (SoC) with the Taiwan Semiconductor Manufacturing Company (TSMC). TSMC has begun ordering its contractors to supply equipment to produce Apple's next processors using a finer 20-nanometer level processing technology,'' Korean Samsung partners told the Korean Times.

As the Korean Times reported, Samsung's partnership with Apple was a boost for its semiconductor division as well, not just chips.

''Apple is cutting the use of Samsung displays for its products. Now the deterioration of ties has expanded to chips. You should remember that the application business is one of Samsung's new growth engines in which the firm is heavily investing,'' said a Korean parts supplier.

Although Apple and Samsung maintained a strong business relationship throughout the years, the two giants locked horns in court through ongoing litigation involving patents. Apple has been shelling out billions of dollars a year to Samsung to use its processing chips in its devices, including the iPhone and the iPad. For its A7 chips, Apple intends to take its business elsewhere.

"Samsung fails to win Apple orders for A7 chips, then some of Samsung's system chip-manufacturing lines will be stopped. That's a scenario Samsung really doesn't want to see,'' the source said. 

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