Apple drops Samsung in A7 processor development

According to the publication's industry source, Apple has been in touch with TSMC, sharing confidential data concerning the A7 SoC which is slated for release early 2014. TSMC has reportedly begun coordinating with contractors to acquire equipment to manufacture the A7 using 20nm process technology.

Samsung is not too keen with the decision, needless to say, since Apple's chip orders have buoyed the company's semiconductor business. An official from a top-tier parts supplier said that Samsung has been investing heavily on its applications business so if it fails to secure orders for the A7 then some of its system chip manufacturing lines will have to be shut down.

The South Korean firm will have to depend on its handset division to fill the gap through its Exynos-branded chips, which will be integrated in the succeeding Galaxy generations. Samsung also plans to sustain the growth of its IC business by expanding its relationship with Nvidia.

Recent patent disputes (See our coverage here.) have widened the gap between these two industry giants despite having a long shared business history.