Apple will be using Taiwanese foundry giant TSMC to build the new A5 system on chip for the new iPad 2 and possibly for the rest of the iOS powered Apple devices (iPod Touch, iPhone and Apple TV).
Anonymous sources have told EETimes that Apple will move away from Samsung and switch to Taiwan Semiconductor Manufacturing Company, which produces chips for a number of well known fabless companies.
Apple will still rely on Samsung to produce the Apple A4 processors which are used in a number of current Apple products.
Many suspect that the decision to switch providers may come from Apple but we suspect that it was actually Samsung who decided to sever links.
The Korean manufacturer is now one of Apple's biggest competitors and as one commentator noted, Apple might have to move away from Samsung for a number of things.
Samsung itself has apparently been having issues with producing its own Exynos 4210 processor which powers the Samsung Galaxy S II and possibly the 8.9-inch and 10.1-inch versions of the Galaxy Tab.
Dumping a competitor to produce more components for one's own products might have been what convinced Samsung of the move.
Apple however did sign a $7.8 billion contract with Samsung to supply components for the iPhone, the iPad and other iOS products but this is likely to be limited to memory and display only.