Apple's Shift to TSMC for A8 Chip Production is Hurting Samsung

Apple's Shift to TSMC for A8 Chip Production is Hurting Samsung

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Apple's shift to TSMC for production of the A8 chip expected to debut in the iPhone 6 is hurting Samsung, reports the WSJ.

The news comes as Samsung reported a less-than-stellar quarter. It's been losing market share in smartphones in the global market and even in China where Xiaomi has overtaken the company in terms of shipments.

Until last year, Samsung had a monopoly on producing Apple's microprocessors; however, this year TSMC began shipping A-series chips that are used in iOS devices like iPhone and iPad.

Samsung admitted on their recent conference call that the outlook isn’t so bright for this business:

“Sales and profitability from System LSI (logic chip business) worsened as demand from main customers continued to decline,” said Robert Yi, Samsung’s head of investor relations.

Looking towards Q3, Yi said “System LSI business is expected to remain weak due to continued low demand from customers.”

To counter the low demand, Samsung says it will focus on improving profitability by expanding sales of other system chips —like image sensors—and work on cost reduction.

Notably, recent rumors suggest that the problem for Samsung may be temporary as they have allegedly secured orders of the A9 processor from Apple.

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Apple's Shift to TSMC for A8 Chip Production is Hurting Samsung
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nonononononono - August 5, 2014 at 11:44pm
MWAHAHAHAHAHAHA!!!! F*CK SAMSUNG!!!! That's what you get for stealing and talking sh!t b!tches!!! "Don't bite the hand that feeds you" is a GREAT analogy that Samsung should've abided by, and are now suffering the consequences of not heeding!!!! ....and to Mr. Tony...first 64-bit ARM processor to be used in a smartphone-A7-iPhone 5(s). Period. The first ARM64 chip was made by AMD...the Opteron A1100...code named Seattle. But the first SoC ARM64? Apple A7. Get your sh!t right before you talk sh!t. F*cktard. You trolls are all the same. Come to a site for something you don't even like to act like you know something, when in actuality, you are a ranting, raving IDIOT. Move out of your mom's house, get life, and maybe a piece of fat girl a$$, and go to your little Android site and be merry. You may want to spend some time doing some research before you post something for the entire world to see how big of a f*cking idiot you really are. HAHAHAHAHA stupid f*ck.
hi - August 6, 2014 at 9:40am
autismus maximus
Bike1967br - August 5, 2014 at 8:41pm
Now will be harder to copy!!
Tony - August 5, 2014 at 9:49pm
Bike1967br- You are a complete moron. Harder to copy all the chips made in the iPhones are made by Samsung you idiot. Without Samsung there would be know 64 bit chip. Samsung already had the 64 bit octo core chip way before Apple even annonced the A7 chip. http://www.pcworld.com/article/2100701/qualcomm-overtakes-apple-with-eightcore-64bit-mobile-processor.html learn and educate yourself. You apple fagboys think you know something, when you dont know shit, and the apple phone was copied from LG PRADA the first real touch phone... Go learn before saying they copy, all the mobile copies everything from someone...
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^ Moron - August 5, 2014 at 10:29pm
Idiot, Apple designs the SoC, not Samsung, they merely manufacture by demand from Apple. Apple was the first to design, build and order 64 architecture of the ARM SoC for mobile OS. Before the A7, all SoCs were 32 bit not to mention that article is regarding Qualcom designing a chip slightly superior to the A7 after the A7 was developed. Nothing to do with Samsung. The article is dated Feb 2014 ffs... idiot!
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