360° Coverage : Apple Buys In-House Processor Chip Company, Will Produce Its Own...

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

YouTube Videos

 
 
 

1 year 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

TSMC’s 20-Nanometer A8 Chip Applied in the iPhone 6 and iPhone 6 Plus
TSMC’s 20-Nanometer A8 Chip Applied in the iPhone 6 and iPhone 6 Plus
Apple disengages Samsung from producing the new A8 processor
 
 
Apple Launches the iPhone 6 and iPhone 6 Plus in US and Canada
Apple Launches the iPhone 6 and iPhone 6 Plus in US and Canada
The customers formed huge queues to collect the new smartphones
 
 
Tim Cook Surprises the iPhone 6 Purchasers at Apple’s Palo Alto Store
Tim Cook Surprises the iPhone 6 Purchasers at Apple’s Palo Alto Store
Tim Cook not only took selfies but also made fun with the Apple customers
 
 
Childless couples too enjoy family meals
New York, Sep 19 (IANS) Couples without kids in the house are just as likely as adults living with young children or adolescents to eat family meals at home on most days of the week, says a US-based study.
 
 
 

Latest from the Network

Italian Serie A standings
Rome, Sep 22 (IANS) Following are the Italian Serie A standings after matches Sunday (tabulated under games played, won, drawn, lost, goals for, goals against, points), according to Xinhua. 1. Roma 3 3 0 0 5...
Read more on Sport Balla
 
Asian Games: Nair fails to qualify for 50m backstroke final
Incheon, Sep 22 (IANS) Indian swimmer Prathapan Nair Monday failed to reach the final of the 50-metre backstroke competition in the 17th Asian Games at the Park Tae-hwan Aquatics Centre here. Competing in heat 3 of...
Read more on Sport Balla
 
NASA spacecraft enters Mars' orbit to explore atmosphere
Washington, Sep 22 (IANS) After 10-month journey of 442 million mile, NASA's Mars Atmosphere and Volatile Evolution (MAVEN) mission entered into Mars orbit, the US space agency has said. After a 33-minute engine...
Read more on Business Balla
 
Asian Games: Chinese team stripped of gold, Ayonika in final
Incheon, Sep 22 (IANS) India Monday finished sixth in the women's 10-metre air rifle event that saw the Chinese team being stripped of the world record and the gold medal after the disqualification of one of its...
Read more on Sport Balla
 
English Premier League standings
London, Sep 22 (IANS) Following are the English Premier League standings after Sunday's matches (tabulated under matches played, won, drawn, lost, goals for, goals against, points), according to Xinhua. 1. Chelsea...
Read more on Sport Balla
 
Jennifer Connelly shed 25 for husband's 'Shelter'
Los Angeles, Sep 22 (IANS) Actress Jennifer Connelly lost 25 pounds to play a homeless woman in her husband Paul Bettany's directorial debut "Shelter". The "Noah" star not only researched to look convincing as Hannah...
Read more on Celebrity Balla
 
China stripped of world record after shooter's disqualification
Incheon, Sep 22 (IANS) The Chinese women's shooting team Monday was stripped of the world record and the gold medal in the 10-meter air rifle event after the disqualification of one of its shooters here in the 17th...
Read more on Sport Balla
 
Thousands join climate change march in New York
New York, Sep 22 (IANS/EFE) New York City Sunday was the scene of a huge and colourful demonstration against climate change with more than 300,000 people turning out as part of an international initiative to raise...
Read more on Politics Balla
 
Yemeni government, Houthi rebels sign truce deal
Sana'a, Sep 22 (IANS) The Yemeni government and Houthi rebels signed a ceasefire deal late Sunday after days of deadly clashes in the capital Sanaa, an official said. The two sides agreed to cease fire in Sanaa...
Read more on Politics Balla
 
US bombs IS positions in Iraq's Sinjar region
Baghdad, Sep 22 (IANS/EFE) US combat aircraft Sunday bombarded positions of the Islamic State (IS) Sunni extremist group in the Sinjar region of Iraq's Nineveh province, Kurdish sources said. A Kurdish leader of the...
Read more on Politics Balla