Does Apple’s New A7 Chip Indicate a Supplier Switch?
Has Apple (NASDAQ:AAPL) accelerated its plans to switch to a new primary chip provider? According to Apple Insider’s Daniel Eran Dilger, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) may already be building Apple’s cutting-edge 64-bit A7 chips and could replace Samsung (SSNLF.PK) as Apple’s main chip supplier.
Apple surprised many industry watchers when it unveiled the iPhone 5S as the world’s first 64-bit smartphone. As noted by Apple executive Phil Schiller at this week’s media event, “This means that graphics-intense applications can bring their console and desktop-level performance to the iPhone 5S,” reports CNET.
According to the Wall Street Journal, Apple signed a deal in June with TSMC for the company to begin making some of its iPhone and iPad chips in 2014. However, the report also noted that Samsung would remain Apple’s “primary supplier through next year.” The Korea-based company currently makes Apple’s A6 chips at its fab in Austin, Texas.