Though the result of the patent war Between
Samsung and
Apple
is hard to be predicted, the cooperation between these two companies
will still go on. It was estimated that Samsung will earn $13 billion in
2013 from Apple by supplying its needed parts. However, after the
lawsuit between these two tech gaint, Apple has made up its mind to stay
away from Samsung and let other suppliers to replace the position
Samsung did in its supply chain. Apple is now relying on companies like
LG Display, AU Optronics and others for many of its components. Recent
reports have suggested that the Cupertino-based company will also be
shifting its CPU business away from Samsung. Amit Daryanani of RBC
Capital noted that such a move would require “a complete redo of
production and manufacturing processes,” and could take a minimum of 12
to 18 months to complete.
“Shifting chip manufacturers isn’t easy and requires a complete redo
of production and manufacturing process,” Daryanani wrote in a research
note to clients on Friday. “Hence, these changes will take 12-18 months
at minimum and won’t be commercially sold ’til 2014.”
If Apple goes through with this plan, the analyst believes the
company only has four options to turn to — Taiwan Semiconductor
Manufacturing Company (TSM), Intel (INTC), Global Foundries or Go
Vertical. Earlier reports from
Digitimes, along with reports
from other analysts, have suggested Apple intends to move its processor
business to TSMC. The move could cost TSMC between $1 billion and $3
billion, which Daryanani notes could give Apple the opportunity to
co-invest in the company to help ease its capital expenditure.
The analyst notes that a move to Intel is seen as less likely due to
Apple’s investment in the ARM architecture, making a transition to Intel
chips more difficult. He notes that Intel is currently ahead of ARM in
development by 1.5 generations, however, and is currently working on a
14-nanometer chip.
Another possibility could be using Global Foundries, a company that
is already working with ARM to build a 20-nanometer chip based on
ARM’s specific design. Apple may also be looking to “go vertical” and
opt to build its own chip, although this is seen as unlikely because the
company has “maintained an asset-light manufacturing model” throughout
the years.
