Samsung is slowly about to lose out on one of its major revenue streams if Apple manages to ahead with its plan. According to Korean daily Hankyung, Apple is gearing up to make Taiwan Semiconductor Manufacturing Co. (TSMC) its main source for chip manufacturing. Samsung, on the other hand, will play second fiddle, which is in no way good news for the South Korean giant.
The newspaper states that industry sources claim Apple is aiming to have TSMC manufacture 60-70 percent of all chipsets for the next generation iPhone, which is likely to be the A8 processor. Samsung will handle the other 40-30 percent; paving the way for Apple to completely rid the iPhone of Samsung hardware by 2015.
We’re not sure if this move is the correct choice for Apple since Samsung is arguably more efficient compared to TSMC. It is highly possible Apple could run into problems and return swiftly to Samsung if TSMC is unable to meet demand. Furthermore, what if TSMC chooses to enter the hardware business in the future to maximize profit? Apple would find itself in a pickle then.
The best course of action here for Apple is to seek ways to do everything for itself instead of relying on others. Then again, maybe that’s easier said than done.