Apple and TSMC

Apple finally signed a deal with Taiwan Semiconductor Manufacturing Co to make some of the chips starting in 2014, according to a TSMC executive. The process had been beset by glitches preventing the chips from meeting Apple’s speed and power standards, TSMC officials said.

Finally after years of negotiations, Apple apparently has signed a deal with TSMC for some of its chip manufacturing (20nm technology node!), for which it relied on Samsung all these years. It was a very strange situation with Apple and Samsung as Apple is Samsung's biggest customer and Samsung, Apple's biggest supplier. But both the companies are also fierce competitors in mobile technology. Apple continues to accuse Samsung of stealing its entire iPhone and iPad design (hardware and software) and Samsung continues to get injunctions against Apple using the patent portfolio that it has built over the years in core technology, that Apple claims to be SEPs (Standard Essential Patents) that Samsung is obliged by law to license to other companies at a 'reasonable price'. It will be interesting to see how this deal twists the situation between these two companies.