Sayonara, Samsung: Apple May Be Taking Its CPU Business Elsewhere

This image described by Apple, Samsung, Samsung Galaxy S, Samsung Galaxy Tab, Samsung-logo-split
Up until now, Samsung and Apple have had a pretty cozy relationship.  The House of Jobs is expected to pour nearly eight BEELLION dollars into the electronics giant for liquid crystal displays, microprocessors and NAND flash memory chips for iPhones and iPads.  Additionally, Samsung produced the A4 CPU that's powered the most recent iDevices.

That last bit may change, and change big time: industry sources in Taiwan (specifically, EETimes) claim that Apple is looking to Taiwan Semiconductor Manufacturing Co. to produce the A5 processor, which will power the next generation of Cupertino handheld hardware — starting with the iPad 2 (debuting this Friday), and continuing with the expected summer release of the iPhone 5.

So what caused the marital tiff in the first place?  Turns out Samsung may have shot itself in the foot by directly competing with Apple's own products — namely, last year's Galaxy S smartphone and this year's Galaxy Tab.  Cupertino may not have taken too kindly to the appearance of these Android powered "iPhone/iPad killers."  (Cue Trent Reznor howling "Do you bite the hand that feeds?")  A less inflammatory explanation?  TSMC, rather than Samsung, offers the world's highest yielding 40 nanometer processor AND most 40 nanometer capacity.

It's not known at this time what part, if any, Samsung will have in future production of A5 chips.


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