''Apple is sharing confidential data for its next A7 system-on-chip (SoC) with the Taiwan Semiconductor Manufacturing Company (TSMC). TSMC has begun ordering its contractors to supply equipment to produce Apple’s next processors using a finer 20-nanometer level processing technology,’’ said an executive at one of Samsung’s local partners in Korea.
''Apple is cutting the use of Samsung displays for its products. Now the deterioration of ties has expanded to chips. You should remember that the application business is one of Samsung’s new growth engines in which the firm is heavily investing,’’ said an official of another top-tier parts supplier to the Korean company.
Samsung is reportedly working on expanding its business with NVIDIA in case it does lose orders for producing the chip. Due to the legal battle between the companies it would appear inevitable that their relationship will deteriorate further; however, it's unclear if Apple is able to cut Samsung out at this point in time.
Read More [via MacRumors]