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Apple Takes on a New Microprocessor Supplier

Image via Flickr by Janitors

Apple has started receiving its first round of microprocessors via its latest partnership with Taiwan Semiconductor Manufacturing Co. (TSMC). The parts signify not only a ramp up of production on Apple products, such as smartphones, that use these processors, but also the significant end to the company’s supplier relationship with Samsung.According to the Wall Street Journal, “The development means Apple doesn’t have to rely solely on Samsung for microprocessors, a critical component that controls applications running in smartphones and tablet computers. By securing an additional supplier, Apple will have more leverage when it comes to price negotiations with its chip suppliers in the future. Through the deal, TSMC adds a high-profile customer that could help support expensive research investments the manufacturer needs to move to advanced technology and will likely boost its overall revenue this year.”

Analysts believe the move signifies the competition that has grown between the two companies, particularly as both businesses expanded in the cellular market in recent years.

This isn’t the first time the two companies were at odds. In 2011, Apple made legal claims that Samsung had infringed the iPhone by creating its own smartphone device.

Samsung isn’t a stranger to the news lately, either. The company recently reported a 27 percent dip in earnings. It also lost around $6.4 million in a recent factory heist. Additionally, the company is under fire for new child labor allegations against Samsung’s supplier factories.

TSMC will now make more than 10 percent of its annual revenue through the new partnership.

Bloomberg News reports, “Apple is ramping up on two bigger devices, said the people, who asked not to be identified because the plans are private. One model will have a 4.7-inch display, compared to the 4-inch screen of the current iPhone 5s, that may be available to ship to retailers around September, said two of the people. A 5.5-inch version is also being prepared for manufacturing and may be available at the same time, the people said.”

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