Rumor: Apple’s Next-Generation A8 Chip Will Be Produced By Samsung

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Despite ongoing rumors that Apple (NASDAQ:AAPL) has been attempting to reduce its reliance on Samsung (SSNLF.PK) for components, it appears that the Korea-based manufacturer will continue to be the primary supplier for Apple’s next-generation A8 chip. According to an unnamed Samsung official cited by ZDNet Korea, Samsung has already signed a contract to produce the upcoming system-on-chip tentatively called the “A8.”

Per the source, production of the A8 chip will begin in the third-quarter of this year at Samsung’s fab in Austin, Texas — the same facility where several previous generations of Apple’s chips have been produced. The two tech rivals are currently collaborating on the final testing phase before mass production begins. Apple is widely-expected to release its next-generation iPhone model in September of 2014. According to a rumor reported by the Wall Street Journal, Apple may release two iPhone models with larger screens this year. One iPhone model is rumored to have a screen size larger than 4.5 inches and the other may have a screen size larger than 5 inches.

ZDNet Korea’s sources contradict a recent report from Taiwan’s Commercial Times that suggested that the production of Apple’s new A8 chip might be handed over to Taiwan Semiconductor Manufacturing Company (NYSE:TSM). However, it should be noted that inaccurate rumors about Apple shifting chip production to Taiwan Semiconductor Manufacturing Company have been circulating since at least last year. Last September, the Korea Economic Daily reported that Taiwan Semiconductor Manufacturing Company lost A8 chip orders from Apple after struggling with yield issues due to the complex 20-nanometer fabrication process.

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