Samsung Planning to Diversify Chip Business Due to Apple

Apple set to end its business ties with competitor.

Samsung has responded to Apple's supposed desire to cut off its business ties with the former's production of mobile processors.

Stephen Woo, president of Samsung's Systems LSI division who manages the production of mobile processors, told Reuters in an interview that the South Korean technology giant is aiming to "diversify our customer base." Samsung has already added "some Chinese customers."

He admitted that the move is a response to Apple reducing its reliance on Samsung for its chips. The latter pays its chief competitor around $8.8 billion for its mobile processors, which is about 80 percent of Samsung's business. During the upcoming years, though, Apple is expected to completely cut off ties with Samsung. By 2017, the firm may reduce its orders to its rival by 80 percent.

Taiwan-based Commercial Times had recently reported that Apple agreed to a trial production with Taiwan Semiconductor Manufacturing Company of the A6X processor found in its fourth-generation iPad. Should the trial be successful, Taiwan Semiconductor is expected to receive the whole A6X order.

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