Samsung Not TSMC to Manufacture Apple’s A6 Chip

Submitted by lalit on October 17, 2011 - 12:29pm.

The Korea Times Claims that Samsung will manufacture Apple’s next generation A6 chip contrary to popular rumors that TSMC and Apple have reached an agreement for A6 chip manufacturing using 28nm process technology.

“Apple has been in talks with Samsung over shipment of its A6 quad-core mobile processor (AP) chips to be used in the next iPhone. It appears that Apple clearly has concluded that Samsung remains a critical business partner,” an executive from an Apple parts supplier based in Korea said on condition of anonymity. “Samsung Electronics will apply its advanced 28-nanometer processing technology to produce qualified A6 mobile APs. TSMC will provide customized chips with designs from Apple, however, the volume will be very small.’’

Both TSMC and Samsung plan to start 28nm manufacturing by end of this year. So it will be interesting to see who actually gets the larger contract. Currently, for Samsung manufacturing Apple designed processors is over $1 billion business per quarter and any manufacturing percentage lost to TSMC will be a substantial blow to them.

The news site also claimed that Apple will use 4-inch LG LCD screen on iPhone 5 that will have same resolution 960 x 640, as the current 3.5-inch LCD on iPhone 4S. However, we think this claim is wrong, as both LG and Toshiba have shown 4-inch IPS panel with 720p resolution (1280 x 720), which they will start manufacturing by end of this year. And it is very like that Apple will use these panels in their next generation iPhone 5 rather than last years 960 x 640 resolution panels.