1 Updates
Apple Looks to Purchase Chip Manufacturer, Create Its Own in the Future
iPhone 5 components

Apple Buys In-House Processor Chip Company, Will Produce Its Own Chips in the Long-Term

Jul 15 2013, 10:59am CDT | by

Apple to Become In-House Chip Manufacturer

 Apple is known for its acquisition of companies containing various technologies it needs to produce the next-generation iPhones and iPads that its customers will “ooohhhh” and “aaahhh” over for...

Filed under: news

Full Story below YouTube Videos

 
 

 

40 weeks ago

Apple Buys In-House Processor Chip Company, Will Produce Its Own Chips in the Long-Term

Jul 15 2013, 10:59am CDT | by

Apple to Become In-House Chip Manufacturer

 

Apple is known for its acquisition of companies containing various technologies it needs to produce the next-generation iPhones and iPads that its customers will “ooohhhh” and “aaahhh” over for the following year. 

 

Remember the iPhone 4S? It was one of Apple’s most unforgettable smartphones, particularly because it introduced voice command for Apple in a way that its voice command efforts prior to the Siri company acquisition had not. This past year, Apple acquired the identity security company AuthenTec, and many say that AuthenTec’s fingerprint sensors may go into the iPhone 5S. 

 

As of now, however, Apple has never been able to produce its own chips. The company has relied on its archenemy, Samsung Electronics, to produce its own iPhone and tablet displays. While Apple has made it known that Apple and Google are competitors in the smartphone and tablet space, it has been subtle with its attempts to move away from Samsung. 

 

While Apple takes jabs at Android fragmentation (as did Phil Schiller on Twitter) as well as its slow updates for the majority of Android consumers, Apple has had little to say about Samsung. The Cupertino, California company took Samsung to court last summer, but has not been as vocal about its view of Samsung products as it has Google products. 

 

Now, facing troubles with current companies with which it contracts for its chips and wanting to free itself completely from the reign of Samsung Electronics, Apple is looking to produce its own iPhone and iPad processor chips in the future. 

 

According to 9to5Mac, Apple has purchased a company (what many think refers to UMC, United Microelectronics Corporation) that can produce its own chips in-house. This, of course, will allow Apple to produce its own chips within the company without the need to rely on other companies. 

 

Within the last year, Apple has strategized to remove Samsung from its central position in the manufacturing of Apple tablets and smartphones. The company turned to LG Electronics to come through on iDevice displays, even bailing out LG from some significant debt in order to work with the company. 

 

Apple still relies on Samsung for its A-series processor chips in iOS devices, but in the long-term, to possess these capabilities in-house will help Cupertino line up with the likes of its “frenemy.” Whatever rivalry between Apple and Samsung exists, it will not become one where Apple and Samsung are on equal footing unless Apple becomes as self-sufficient in smartphone and tablet production as Samsung. 

 

While Apple hopes to gain its processor chip self-sufficient, production capabilities, it will not gain this ability overnight; in fact, Apple has recently agreed to use TSMC for its chip production in 2014 and, upon not finding any other well-qualified candidates, has agreed to sign a new contract with Samsung to produce its chips once more in 2015 (despite the fact that the current contract with Samsung will end in 2014).

 

 The tech site SemiAccurate reported a few days ago that Apple “bought into a fab,” code language for owning stock in a processing chip company. CNET later confirmed that the chip-making company in question is GlobalFoundries. According to the CBS-owned tech site (http://news.cnet.com/8301-13579_3-57593589-37/apple-talking-to-globalfoundries-about-u.s.-based-chipmaking-says-report/), 

 

“Globalfoundries and Samsung have the same technology foundation based on an IBM joint development agreement. So that gives [a possible deal] a little less risk if they’re looking at a secondary option to offset [the current chip manufacturing] with Samsung. Samsung’s fab in Austin (Texas) and GF’s fab in New York could both ramp a similar product and GF could offset capacity that Samsung can’t fulfill.”

 

 

Don't miss ...

 

<a href="/latest_stories/all/all/22" rel="author">Deidre Richardson</a>
Deidre Richardson is a long-time Apple fan and reports passionate about the latest Apple news and rumors.

 

blog comments powered by Disqus

Latest stories

Microsoft Results Beat Estimates, Cheer Investors
The bad news for Microsoft in its fiscal-third quarter was that sales and earnings were both off from a year ago. But the company beat Wall Street estimates and showed surprising strength in its Windows business. Shares...
 
 
Google, Apple settle high-tech workers' lawsuit
SAN FRANCISCO (AP) — Google, Apple, Intel and Adobe Systems have settled a class-action lawsuit alleging they conspired to prevent their engineers and other highly sought technology workers from getting better job...
 
 
GameStop Dramatically Rolling Back Games Business
“Game” may be right there in the name, but brick and mortar video game store GameStop is looking to diversify. CEO Paul Raines told investors that the company plans on making an aggressive expansion into “gaming...
 
 
Apple: Rotting From The Core?
Apple released results on April 23: The company announced higher dividends, increasing stock buybacks from $60 billion to $90 billion, a 7 for 1 stock split, and higher earnings. The stock shot upward by $44 per share...
 
 
 

Latest from the Network

Google, Apple settle high-tech workers' lawsuit
SAN FRANCISCO (AP) — Google, Apple, Intel and Adobe Systems have settled a class-action lawsuit alleging they conspired to prevent their engineers and other highly sought technology workers from getting better job...
Read more on Business Balla
 
Microsoft Results Beat Estimates, Cheer Investors
The bad news for Microsoft in its fiscal-third quarter was that sales and earnings were both off from a year ago. But the company beat Wall Street estimates and showed surprising strength in its Windows business. Shares...
Read more on Apple Balla
 
Google, Apple settle high-tech workers' lawsuit
SAN FRANCISCO (AP) — Google, Apple, Intel and Adobe Systems have settled a class-action lawsuit alleging they conspired to prevent their engineers and other highly sought technology workers from getting better job...
Read more on Apple Balla
 
Oregon moves to dump health exchange website
PORTLAND, Ore. (AP) — Oregon, once expected to be a national leader in the federal health care overhaul, on Thursday moved to become the first state to dump its troubled online health exchange and use the federal...
Read more on Business Balla
 
Cloud strength helps Microsoft earnings top Street
LOS ANGELES (AP) — In Satya Nadella's first quarterly earnings release as chief executive, Microsoft Corp. on Thursday posted earnings and revenue that beat Wall Street expectations, offering new justification for the...
Read more on Business Balla
 
Aaron Carter wants to 'sweep' Hilary Duff off feet
Aaron Carter wants to "sweep" Hilary Duff "off her feet". The former pop star dated the 26-year-old singer-and-actress for 18 months when they were teenagers, but he now wants the chance to rekindle their romance....
Read more on Celebrity Balla
 
Amazon Shares Rise As Sales Growth Remains Strong
A big question for shareholders of Amazon.com was the strength of its sales growth for the first quarter. The answer today was sales growth is still darn strong, and shares were higher after hours. Amazon.com said it...
Read more on Business Balla
 
Visa Shares Falling On Light Revenue Despite 26% Jump In Second Quarter Profit
Visa, the world’s largest credit and debit card company, reported a 26% jump in second quarter fiscal 2014 profit Thursday afternoon, but shares of the payment technology company are down in after-hours trading thanks...
Read more on Business Balla
 
Do The FDA's Proposed E-Cigarette Restrictions Go Far Enough?
Today the Food and Drug Administration (FDA) finally announced proposed regulations for e-cigarettes, responding to pressure from public health advocates. The popular battery-powered vaporizing devices have come under...
Read more on Business Balla
 
Africa's Richest Woman Plans To Increase Stake in Unitel
Africa’s richest woman, Isabel dos Santos, plans to increase her stake in Unitel, Angola’s largest mobile phone company. According to a report by Portuguese newspaper, Publico, dos Santos (who already owns 25% of Unitel...
Read more on Business Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla