Chips in iPhone 5 Successors To Be Fabbed By TSMC

Apple will move away from Samsung Electronics for the next two iterations of its A-series system on chips, the A6 and the A7, which are scheduled to be launched in 2012 and 2013 respectively.

According to Ingrid Lee writing for Digitimes says that Apple and Taiwan Semiconductor Manufacturing Company (TSMC) have penned a foundry partnership agreement which will provide Apple with 28nm and 20nm processes.

It has been widely predicted that Apple would have moved away from Samsung Electronics after the two tech giants have started to step on each other's toes with competing products.

The added fact that Apple & Samsung have been suing and counter suing each other means that they will probably never be good friends again. TSMC has apparently managed to negotiate a good price which will allow it to keep its gross profit margin in line with its current average of 45 per cent.

Digitimes also notes that Apple will probably need to split orders for the backend packaging - at least in the short term - because of TSMC's limited capacity for assembling the SoC itself.

It's worth noting that TMSC is also working on a 3D chip technology similar to Intel's Trigate technology but won't introduce it when its 14nm process goes live.