Apple has reduced Samsung’s involvement in chip design, relationship going south?

October 15, 2012
34 54 11

    Apple and Samsung are not exactly in good terms due to patent disputes being lodged in the courts of law around the world. Samsung remains to be the biggest supplier of the processor and memory chips that power Apple’s smartphones and tablets, though. However, that relationship might change soon, as unveiled by a source from within Samsung.

    A report by the Korea Times cited a Samsung official as saying that the relationship between the two companies have substantially changed. “Apple … has made it clear it will no longer use its rival’s technology, according to a senior Samsung official.”

    The report has also cited an anonymous source, saying Apple is no longer collaborating with Samsung in designing its latest A6 processor chips. Rather, Samsung is now just producing the chips for Apple. “Apple did all the design and we are just producing the chips on a foundry basis.”

    This is a change from the two companies’ previous working arrangements, in which both collaborated on chip design and development. Apple is reportedly shifting manufacturing work to other foundries, as well, such as the Taiwan Semiconductor Manufacturing Company (TSMC) or even Intel. And it’s not only in processor chips. Apple might shift orders for other components — including memory, display and Flash storage.

    As such, Samsung stands to lose its biggest client, which might either turn to other suppliers or focus on in-house development. Case in point: a key chip architect was reported to have made the move from Samsung to Apple. This, along with Apple’s plans to shift production to other suppliers, might signal that the mutually-beneficial relationship might soon come to an end.

    Should Samsung be worried with the prospect of losing its biggest client?

    Comments

    • http://www.facebook.com/profile.php?id=746321032 Roy Gutierrez

      Hell no. Samsung is going to be fine even without the childish Cuppertino gang!!!

      • MasterMuffin

        It’s their biggest client so it’s going to hurt…

        • geo

          Samsung just don’t make phones. They’ll be fine

          • justin

            Apple sells what.. 40+ million devices. Samsung will lose money, and take a dip in stock value too I would imagine.

          • MasterMuffin

            Like the other guy in this page said , apple sells about 30,000,000 devices in a quarter, so it’s going to hurt…

      • On a Clear Day

        It will be a very good thing for Samsung to get all things Apple out of its house. The situation right now smacks of conflict of interest from virtually, if not all, perspectives.

        On the one hand they are competitors in the product arenas at the highest levels; constantly fighting for supremacy; yet they are “collaborating” with each other?

        That would be like the U. S. “collaborating” with the Nazi’s during WWII for help in developing a nuclear weapon (which, for those who are not aware of it, both Japan and Germany were working on and it was a race against time at the time as to whether the Germans, especially, or the United States would win that race and win the war.).

        It is time Samsung finally gets truly serious about burying Apple with its inherent advantages of greater flexibility, innovation and infinitely broader consumer base than its more insular competitor.

        Unlike Apple, Samsung doesn’t even need to declare war and rattle their saber like Steve Jobs did with his famous promise to to nuclear against Android; all Samsung needs to do is keep doing what it does better than Apple – create products people want because they have real value and serviceabilty built in that serves the consumer, rather than the company’s best interest first.

        • http://pulse.yahoo.com/_TX4UVP55MVN32LGHCIKG7XOU2E Highlowsel

          “All Samsung needs to do is keep doing what it does and always has done better than Apple – create products people want…..”

          Hmmmm….while I can understand the sentiment need I point out that Samsung’s entire phone line (smart) stem’s from the technical innovations first promulgated by Apple? Indeed one could say that Samsung could have done it first, but couldn’t or wouldn’t try; especially since it could be argued they had the pieces to do it back before smart phones took off. To date I see them as merely taking what Apple has done and move it forward. As true innovators and creators of new product lines/categories I’ve yet to see one thing out of ‘em that ain’t more imitative than innovative. And this is, at heart, probably why Apple wants to get away from them. True innovators don’t like having someone all over them like white on rice looking over their shoulder copying everything they do.

          Just sayin’ is all.

    • Cycad

      Awesome…this’ll allow Samsung’s competitors to better compete with the Korean giant. Way to go Apple!

    • http://www.facebook.com/profile.php?id=1076674789 Friðberg Leifs Jensson

      The money income will slow a bit, but this allows Samsung to supply others instead and even supply more RAM and CPU’s for their phones.
      In the article it says that Apple won’t use their rival’s technology does that mean Apple will be slower to come up with new things?

    • Xeltos

      Good… That will make Sammy bring the Exynos 5 faster to the market..
      When the hell is it coming anyway. Out Exynos 5 duel now and then Give S4 a quad one.. come on sammy. we have been waiting for too long.

    • Ron

      Good thing. Samsung doesn’t need Apple!!

    Popular

    Latest