Samsung will be producing the A6 quad-core mobile chip for future Apple iOS devices. It was believed that Apple had signed a deal with Taiwan Semiconductor Manufacturing Company (TSMC) last month to supply chips but that deal could be on the rocks now.
The Korean Times is now reporting that Apple and Samsung have maintained their buyer and supplier relationship and will do so going forward for the foreseeable future. Citing an executive from an Apple parts supplier in Korea, it seems that Apple has concluded that Samsung is a critical business partner and can't sever ties with them just yet.
Samsung is already producing the A6 processor for future iOS devices at a manufacturing plant that opened in 2007 in Austin, Texas. TSMC will still be manufacturing chips for Apple but the volume is expected to be very low. The reason for this is because TSMC hasn’t stabilized their manufacturing process and Apple isn’t willing to take the risk of switching suppliers under such circumstances.
The article points to an interview with Samsung CEO Choi Gee-sung where he told reporters that Samsung is handling legal issues with Apple independently of their business relationship with the company. Additionally it was revealed that COO Lee Yae-yong was invited by Apple CEO Tim Cook to attend a private memorial service for Steve Jobs last Sunday. Yae-yong was said to remain at Apple, presumably through the early part of this week, to discuss pending business issues.