Apple Could Dump Samsung for This New Ally

Apple (NASDAQ:AAPL) may be making a big move away from Samsung (SSNLF.PK), as TSMC (NYSE:TSM) is reportedly preparing to develop Apple’s next smartphone chip, the A7.

It’s possible that TSMC is as far as the “tape out” process of designing the new chip on its 20nm process. This process is one of the last steps before a circuit design is complete. So, the A7 chip could be ready for early production in May or June.

TSMC has had heavy investments in its production facilities, possibly reaching $17 billion, which could hint at an expanded operation to support Apple chip production. This has supported speculation that TSMC and others could replace Samsung as Apple’s go-to chip makers.

The Taiwanese chip maker is also boosting capital expenditure for its 28nm process, which suggests it may have received some large orders from Apple…