Apple to Stick with Samsung for A6 Chip Production After All

Last month, we heard rumors that Apple had signed an agreement with Taiwan Semiconductor Manufacturing Company (TSMC) for production of the next-generation A6 and A7 chips destined for future iOS devices. Samsung manufacture the A4 and A5 chips for Apple, but Apple seems to try to shift to TSMC because of difficult relations and legal battle between Apple and Samsung.

The Korea Times now reports that Apple will indeed primarily be sticking with Samsung for A6 production.

"Apple has been in talks with Samsung over shipment of its A6 quad-core mobile processor (AP) chips to be used in the next iPhone. It appears that Apple clearly has concluded that Samsung remains a critical business partner," an executive from an Apple parts supplier based in Korea said on condition of anonymity.

He said that Samsung has been increasing the output of the Apple-designed A6 chips in its manufacturing plant in Austin, Texas.

It seems that Apple came back to Samsung because of TSMC having issues with its production process, while Apple needs in a stable component supplier.

"The manufacturing process at TSMC hasn’t been stabilized. Considering Apple's previous patterns of adopting qualified technologies, Apple isn't taking risks. Samsung offers better pricing and capacity commitment for the A6 mobile APs," said an official from a different Apple supplier.