TSMC gets Apple's A6 business

Taiwan’s TSMC has started trial manufacturing of next generation A6 chips for Apple confirming that Jobs’ Mob is moving away from Samsung.

It had been expected that Apple would take away as much of its manufacturing as possible from Samsung after it started making successful Android smartphones and tablets.

TSMC, the world’s largest contract chip maker, is set to become a supplier of some processor chips to Apple, likely starting next year.

Unlike Samsung, TSMC is fearlessly loyal to Apple and enforces the outfit’s secrecy so well that its employees would rather jump off a building rather than face an investigation into leaking Apple gear.

It is not clear if Apple will use TSMC, much depends on whether or not the outfit can produce a decent yield rate.

A source told Reuters that TSMC has got all the authorisation and details ready, but just has to confirm it can make the chips without too many glitches.

Samsung is likely to keep A5 orders because switching production to TSMC might be too tricky to think about.

Apple would have to redesign the chipset, which Samsung has been deeply involved from the beginning and has some intellectual property. Apple might have to buy some of that technology off Samsung so that it can be included in the A6. Our guess this will be one of the things it will demand if it wins its claim against the Android technology that Samsung dared to use.

However other analysts told Reuters that it is somewhat silly for Jobs’ Mob to jump ship. Samsung, which had just built a new fab for Intel, might offer a much lower price.

However if it was about sensible business decisions, Apple would not have upset the apple cart and sued Samsung in the first place.  But hell hath no fury like Steve Jobs when he is scorned, and Samsung has to pay the price for using Android.