While Apple Inc. continues to battle Samsung in court over alleged patent violations, the Cupertino, Calif.-based technology giant has had to rely on the South Korean semiconductor manufacturer for production of its Apple (NASDAQ:AAPL) A8 processor, which has yet to be unveiled in future iPhone and iPad devices.
Unfortunately for Samsung (OTCMKTS:SSNLF), its relationship with Apple in regards to the A8 may come to an end, according to a new report by a Taiwanese news site.
According to TechNews Taiwan, Apple may have to shift the entire responsibility of A8 processor manufacturing to Taiwan Semiconductor Manufacturing Company.
Why is Apple abandoning Samsung for the production of its next A-series processor?
According to the report by TechNews Taiwan, low A8 processor yields using a 20nm manufacturing process are the root of the problem.
Last summer, the Wall Street Journal reported that Apple struck a deal with TSMC to handle manufacturing of Apple processors for iOS devices in 2014. But manufacturing of the Apple A9 processor may continue to be split between Samsung and TSMC, according to the TechNews Taiwan report.
While Samsung may no longer be handling the production of the A8 processor, it’s still unclear whether this will eventually lead to an eventual break between the relationship of Apple and Samsung.
However, as Apple and Samsung have begun competing with each other directly with several products, such an outcome seems almost inevitable.
According to WSJ, Apple has attempted to reduce its reliance on Samsung by procuring screens and flash memory from other manufacturers as a way to slowly distance itself from the South Korean rival. Unfortunately, until recently, Apple has had to continue to rely on Samsung in order to manufacture its A-Series chips, which power iPhones, iPads and other iOS devices.
The Apple A8 processor is expected to debut alongside its rumored iPhone 6 sometime in late 2014.
Do you believe Apple is setting itself up to leave Samsung for good, or is this merely a snag in the manufacturing chain? Let us know your thoughts in the comments.