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Samsung Planning to Diversify Chip Business Due to Apple

By - Source: Reuters | B 34 comments

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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Top Comments
  • 20 Hide
    Soda-88 , January 15, 2013 11:20 AM
    Apple's mobile processors were 80% of Samsung's business?
    I have a hard time believing that...

    Edit: Nvm, Zak Islam reworded it to make it look that way.. It's 80% of Apples business with Samsung that's been pulled out.
  • 20 Hide
    fuzznarf , January 15, 2013 10:58 AM
    AMD should contract Samsung to produce their next CPU and GPUS with Samsung's 14nm process.
  • 19 Hide
    house70 , January 15, 2013 10:22 AM
    Smart move from Samsung. Never put all your eggs in one basket.
Other Comments
    Display all 34 comments.
  • 19 Hide
    house70 , January 15, 2013 10:22 AM
    Smart move from Samsung. Never put all your eggs in one basket.
  • 14 Hide
    TheBigTroll , January 15, 2013 10:37 AM
    i would of just jacked up the prices by another 20% to be honest
  • 14 Hide
    unksol , January 15, 2013 10:39 AM
    Funny how you left out the part where Samsung upped apples price by 20% and apple has no other supplier so they paid it. Its Samsung leaving apple. Not the other way around.
  • 16 Hide
    TheBigTroll , January 15, 2013 10:46 AM
    im pretty sure they jacked up the prices to cover for the rounded corner case
  • 20 Hide
    fuzznarf , January 15, 2013 10:58 AM
    AMD should contract Samsung to produce their next CPU and GPUS with Samsung's 14nm process.
  • 11 Hide
    edlivian , January 15, 2013 10:58 AM
    apple will be back, samsung seams to have a easier time reaching new die shrinks than tsmc.
  • 20 Hide
    Soda-88 , January 15, 2013 11:20 AM
    Apple's mobile processors were 80% of Samsung's business?
    I have a hard time believing that...

    Edit: Nvm, Zak Islam reworded it to make it look that way.. It's 80% of Apples business with Samsung that's been pulled out.
  • -5 Hide
    azraa , January 15, 2013 11:39 AM
    Phables? Becoming more popular for whom?
    What a silly idea
  • 5 Hide
    azraa , January 15, 2013 11:39 AM
    Woops, sorry, wrong tab 8D
  • 10 Hide
    g00fysmiley , January 15, 2013 11:53 AM
    yep bad wording, apple is nto 80 percent of samsung's buisness, samsung is however likely 80 percent of the components in apple products.
  • -8 Hide
    wemakeourfuture , January 15, 2013 12:18 PM
    house70Smart move from Samsung. Never put all your eggs in one basket.


    LOL it was not their decision it was Apple's.
    Nice spin, you should work for Samsung PR fanboy.
  • 8 Hide
    hate machine , January 15, 2013 12:32 PM
    Soda-88Apple's mobile processors were 80% of Samsung's business?I have a hard time believing that...Edit: Nvm, Zak Islam reworded it to make it look that way.. It's 80% of Apples business with Samsung that's been pulled out.


    Noticed that too, on top of that these are analyst estimates for 2013. Oh Zak... whatver produces the best click bait.
  • 7 Hide
    bubuhubu , January 15, 2013 12:44 PM
    Quote:
    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


    AMD and nVidia wish good luck to Apple
  • 7 Hide
    slabbo , January 15, 2013 1:45 PM
    no way Samsung's business is 80% from Apple, especially since Samsung is selling more Galaxy's than iPhones, and that's only one part of Samsung's business. They are leaving out screen tech, TV's, printers, cameras, computers...etc.
  • 1 Hide
    slabbo , January 15, 2013 1:48 PM
    fuzznarfAMD should contract Samsung to produce their next CPU and GPUS with Samsung's 14nm process.


    better yet, I wonder if Samsung can just buy AMD for cheap and give Intel a real run for it's money.
  • -1 Hide
    ericburnby , January 15, 2013 1:50 PM
    unksolFunny how you left out the part where Samsung upped apples price by 20% and apple has no other supplier so they paid it. Its Samsung leaving apple. Not the other way around.

    Funny how you still believe that "rumor" when Samsung themselves released an official statement saying it wasn't true. Just like the rumor Samsung was cutting off LCD's to Apple and Samsung turned around and released another official statement saying it wasn't true.

    I guess when you want to believe in something even the lamest of rumors appear as facts to you.
  • -2 Hide
    ericburnby , January 15, 2013 1:55 PM
    Xperia hero of the reloveutionYeah, Samsung hates money so much that they're willing to dump their biggest client. Great analysis guy.

    Not sure why a common sense comment gets voted down.

    People can't seem to comprehend that Samsung Mobile (that makes phones & tablets) is a DIFFERENT DIVISION from Samsung Semi. You can bet that Samsung Semi is pissed off at losing so much money in sales because of the actions of a different division in the same company. They might be "brothers" but that doesn't mean they always get along or are happy about what the other one does.
  • -2 Hide
    ibnmuhammad , January 15, 2013 2:12 PM
    Quote:
    Apple's mobile processors were 80% of Samsung's business?
    I have a hard time believing that...


    @EricBurny made an excellent point... the "80% of Samsung's business" makes sense if it's their semiconductor devision.
  • 0 Hide
    ojas , January 15, 2013 3:38 PM
    I wonder if Intel might make stuff for Apple?
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