Apple may partner with TSMC for A5 production in potential blow to Samsung
Apple has allegedly inked a deal with chipmaker Taiwan Semiconductor Manufacturing Co. to produce the A5 chip for the iPad 2, a move that is seen as a potential loss for Samsung.
Apple is rumored to have entered a foundry agreement with TSMC to build the A5 processor, according to EETimes. In addition to powering the new iPad 2 set for release on Friday, Apple's custom dual-core A5 processor is also expected to power the anticipated iPhone 5, expected to debut this summer.
For its current devices, Apple partners with Samsung for production of the A4 processor. Last year's first-generation iPad featured two Samsung dies stacked inside the A4 chip.
Apple is expected to spend $7.8 billion on components from Samsung alone in 2011, for parts including liquid crystal displays, processors and NAND flash memory chips in mobile devices including the iPhone and iPad. The deal would make Apple the largest customer of Samsung.
The EETimes report said Apple is making the switch for three reasons, one of them being the fact that Samsung competes with both the iPhone and the iPad with its own devices. Last year, Samsung released the Galaxy S smartphone to compete with the iPhone 4, and the Galaxy Tab to take on the iPad. Both Android-powered product lines will receive updates this year.
Apple is also said to be exploring TSMC because it has the highest yielding 40 nanometer processor in the world, along with the most 40 nanometer capacity. The report said it is now "unclear" whether Samsung will play any part in building the A5 chip for Apple in the future.
Apple is rumored to have entered a foundry agreement with TSMC to build the A5 processor, according to EETimes. In addition to powering the new iPad 2 set for release on Friday, Apple's custom dual-core A5 processor is also expected to power the anticipated iPhone 5, expected to debut this summer.
For its current devices, Apple partners with Samsung for production of the A4 processor. Last year's first-generation iPad featured two Samsung dies stacked inside the A4 chip.
Apple is expected to spend $7.8 billion on components from Samsung alone in 2011, for parts including liquid crystal displays, processors and NAND flash memory chips in mobile devices including the iPhone and iPad. The deal would make Apple the largest customer of Samsung.
The EETimes report said Apple is making the switch for three reasons, one of them being the fact that Samsung competes with both the iPhone and the iPad with its own devices. Last year, Samsung released the Galaxy S smartphone to compete with the iPhone 4, and the Galaxy Tab to take on the iPad. Both Android-powered product lines will receive updates this year.
Apple is also said to be exploring TSMC because it has the highest yielding 40 nanometer processor in the world, along with the most 40 nanometer capacity. The report said it is now "unclear" whether Samsung will play any part in building the A5 chip for Apple in the future.
Comments
Of course Apple should spread work across their suppliers, Samsung aren't the only ones in this Galaxy after all.
Darn. Beat me to it - maybe Apple is tired of this game and wants to kick some S?
Apple is also said to be exploring TSMC because it has the highest yielding 40 nanometer processor in the world, along with the most 40 nanometer capacity. The report said it is now "unclear" whether Samsung will play any part in building the A5 chip for Apple in the future.
If their history is that unstable I doubt that Apple will bet the farm on them - can't see Samsung out completely. Keeps Apple in a better position to have competitors than single suppliers I would think.
Darn. Beat me to it - maybe Apple is tired of this game and wants to kick some S?
Yeah, it sends a message: Compete with us, and we'll stop doing business with you. Which is logical enough when you get right down to it.
What fabrication process is this SoC on, anyone know? Still 45nm?
Pretty sure it's 40nm.
Why not outsource it to GlobalFoundries? They are only in the fab business and wont be competing with Apple with their own smooth tablet.
I suspect Apple wants to see GF prove that it can be a reliable supplier. Apple remembers all to well the frustrations of using IBM-based fab technology with the PPC, and GF is basically AMD's old fabs, which were also based on IBM tech and also had a lot of problems over the past decade.
It would be wise for Apple to have second-sourcing for components, just in case there's a need for higher capacity or some other unforeseen slowdown or stoppage of component production. Apple is producing very high numbers of devices using the same processors across its entire iOS line-up so Apple may be just playing it safe.
Also, if rumours are to be believed, the difference between Apple's SoC and others built on the same ARM reference platform is their own IP on powersaving tech. I've never quite understood how they can have competitors build their chips without expecting the secrets to be stolen. It's not lke Samsung can turn their head away while they are manufacturing Apple's secret chip.
I don't trust TSMC. Both ATI and Nvidia have had serious problems with them for years. They should be on a smaller process now, but it failed. This is common for them.
That's because those manufacturers rush to a new process ASAP because it brings a dramatic increase in performance for their cards. CPU manufacturers are much more cautious because most of the die space isn't for the CPU itself, but cache. GPU manufacturers also use half-nodes, which Intel and AMD don't bother with because they would be retooling their factories yearly.
What fabrication process is this SoC on, anyone know? Still 45nm?
40nm today, 28nm by the end of the year.
So Samsung is trading $11 billion in sales to Apple in favor of the "smooth" selling Galaxy Tab?
Yes. They screwed up. But if tablets are destined to take the place of PCs in, say, 60% of their current uses, while at the same time creating new uses constituting an additional, say, 15% of the current PC market... Well, that's such a colossal new marketplace that no one, including Samsung, could ignore it. And Samsung, because they were an Apple supplier, probably figured they had an edge.
But yeah - they screwed up. They should have focused on simply keeping Apple's business, which itself might well have grown for them.
Darn. Beat me to it - maybe Apple is tired of this game and wants to kick some S?
True, true. But Apple should continue sourcing at least some components from Samsung--you know, just to keep Tabs on them...
Where is the rumor that Apple is building a plant to build SoCs out a solid block of metal?
No, no, get your absurd fanboy pipe dreams right.
It's a white G5 SoC made of sprayed metal, with a Blu-ray drive and Ultra Retina Display, delivered to you by Megan Fox riding a pink unicorn. It costs zero dollars and uses no power.
Yes. They screwed up. But if tablets are destined to take the place of PCs in, say, 60% of their current uses, while at the same time creating new uses constituting an additional, say, 15% of the current PC market... Well, that's such a colossal new marketplace that no one, including Samsung, could ignore it. And Samsung, because they were an Apple supplier, probably figured they had an edge.
But yeah - they screwed up. They should have focused on simply keeping Apple's business, which itself might well have grown for them.
Yup.. if they had focused on keeping Apple's business they would have had a shot at becoming the Intel of mobile, which would not be a bad role to play in the industry at all.
Now they will pay the price for their lack of vision...
Where is the rumor that Apple is building a plant to build SoCs out a solid block of metal?
Naw, they're using 3D printers.