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

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Posted August 5, 2014 at 3:46pm by iClarified · 12075 views

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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hi - August 6, 2014 at 9:40am

autismus maximus

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Bike1967br - August 5, 2014 at 8:41pm

Now will be harder to copy!!

^ 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!

Bike1967br - August 6, 2014 at 1:46pm

The harder part is to design the product!!! If you look the samsuck's smartphone's design before iPhone and after that you'll see that the are merely copies of the original iPhone's design. Now they have to create its own design without to see apple's projects. And without apple's money!!!!!

Bike1967br - August 6, 2014 at 1:52pm

And all androidiots must learn that performance does not come only from core's number. Apple's products do more with less processing power. It creates products smaller, less power consumption. And smarter products.

Bike1967br - August 6, 2014 at 2:00pm

The simple and killing questions: Was LG Prada the first multitouch??? Did LG Prada have motion sensor, light sensor, proximity sensor??? Did LG Prada run a real POSIX based OS??? Did LG Prada has the same interface graphic quality and performance??? Touchscreen devices exist since 1998 (with Palm Palmtops). But the concept of the iPhone comes with the original iPhone in 2007 and not before. The celular phone's history are made in 2 parts, before iPhone and after that.

Ren - August 5, 2014 at 6:55pm

That's what they get for comparing themselves to Apple so gullibly. Monkey see monkey do. lolololol

Fukscrawn John - August 5, 2014 at 5:02pm

Hahaha samshit always needs a good buttfck for such healthy fruit to live for, because everyone knows they need it to live, apple is life as usual and this sums it up. Keep that hate syncing through your thick a$$ heads samsheeps.What samshit can't get together are ideas because apple is their main source. Only good at gimmicks and tricking innocents into crimping up apartments into dust and turning plastic unstable toys into bombs, that proves where galaxy got the name. They're like a tree but the source where they stay alive is photosynthesis which is Apple.