Samsung Planning to Diversify Chip Business Due to Apple

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.

 

Contact Us for News Tips, Corrections and Feedback

Create a new thread in the US News comments forum about this subject
This thread is closed for comments
34 comments
Comment from the forums
    Your comment
    Top Comments
  • fuzznarf
    AMD should contract Samsung to produce their next CPU and GPUS with Samsung's 14nm process.
    20
  • Soda-88
    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
  • house70
    Smart move from Samsung. Never put all your eggs in one basket.
    19
  • Other Comments
  • house70
    Smart move from Samsung. Never put all your eggs in one basket.
    19
  • TheBigTroll
    i would of just jacked up the prices by another 20% to be honest
    14
  • unksol
    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.
    14