Apple Said to Tap TSMC Over Samsung for 2014 Chip Production [Digitimes]

Digitimes reports that the transition of Apple’s chip manufacturing from Samsung to TSMC will not happen this year, but in 2014, according to their sources. While rumours talked about TSMC manufacturing the majority of application processors for the next-generation iPhone, this seems unlikely, at least according to industry sources.

Apple is expected to contract TSMC to manufacture all the application processors (APs) used in the 2014 model of its iPhone slated to launch in the second half of the year, industry sources have claimed.

To satisfy the huge demand from Apple, TSMC has begun equipment move-in for the phase-5 facility of its 12-inch fab located in southern Taiwan, the sources said. The Fab 14, Phase 5 facility will be ready for production by the end of 2013, the sources indicated.

This means Samsung Electronics will remain the main supplier for the next-generation iPhone and the upcoming low-cost iPhone as well. However, earlier rumours claimed that Samsung’s exclusive contract is about to expire in mid-year, so this means Apple will need to extend the contract, which, in the light of the ongoing patent litigation, seems questionable.