GlobalFoundries Can Become Samsung’s Subcontractor to Produce Apple A7 Chips

New York-based company called GlobalFoundries can possibly become Samsung’s subcontractor in manufacture of Apple A7 chips for iPhones and iPads, Arik Hesseldahl of AllThingsD reports.

Here’s what he writes:

Sources close to the situation said the deal that appears to be taking shape looks more like this: Samsung will use GlobalFoundries for what is known as “flex capacity.” This is a long-standing industry practice under which a chip manufacturer pays to occasionally use another company’s factories when demand on their own factory is running higher than they would like, and they need a little help.

Looks like GlobalFoundries won’t be Apple’s direct supplier as it was reported earlier - it will work in cooperation with Samsung.