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Apple moving chip production away from Samsung

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Apple intends to move a portion of their A8 chip production from Samsung to the Taiwan Semiconductor Manufacturing Company.

The animosity that exists between Apple and Samsung is no secret, manifesting itself in lawsuits and advertisements, even though Samsung is the main manufacturer of iPhone chips. The Korean company has been the major producing force behind the A-series of ARM processors for a while now, including the A7 found inside the new iPhones, but that could change soon.

Korean newspaper Hankyung is reporting that production of the next iPhone chip, the A8, will transfer partially to the Taiwan Semiconductor Manufacturing Company (TSMC). The company is expected to cover 60-70% of the A8's production, with the rest going to Samsung who's already signed a contract.

Although Apple would do well to transition away from relying on one of their biggest competitors, they need to be sure that their new ally can meet demands. With over 9 million iPhone 5s and 5c units sold during the first weekend of launch, TSMC is sure to have their hands full in managing Apple's orders.

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Omar Qudsi, 2013-09-29 (Update: 2013-09-29)