Is Apple Set to Replace Samsung With a New Chip Maker?

Before you go, we thought you'd like these...
Before you go close icon

It's no secret that Apple and Samsung don't get along these days. The two leaders in mobile computing butt heads in courts around the world as they compete head-to-head for market share and profits in the smartphone and tablet spaces.

Yet the two are tightly intertwined, as Samsung manufactures plenty of components for Apple's mobile devices.

Rumor has it that the two frenemies will put some distance between them. Taiwanese tech publication DigiTimes has long suggested that Apple's core chips might find a new home in massive chip foundry Taiwan Semiconductor Manufacturing -- and now the publications claims that it's a done deal.


According to DigiTimes' anonymous sources, Apple will farm out a small quantity of A-series processor orders to TSMC this summer, followed by a deluge of orders in 2014 and beyond. Assuming that the story holds up, what does this mean for investors in Samsung, Apple, and TSMC?

In the following video, Fool contributor Anders Bylund floats the most likely answer: not as much as the heavy rumor-mongering might make you think. Even for Taiwan Semi, a few million Apple chips are a drop in the bucket when the annual unit capacity is counted in the billions of finished chips.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged among the five kings of tech. Click here to keep reading.

The article Is Apple Set to Replace Samsung With a New Chip Maker? originally appeared on Fool.com.

Fool contributor Anders Bylund holds no position in any company mentioned. Check out Anders' bio and holdings, or follow him on Twitter and Google+.The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners