There are rumors circulating around Asia that Samsung is putting off building a new chip fabrication plant because Apple is also rumored to be moving away from Samsung making the A-series chips. Looks like Apple might be starting to hurt Samsung where is hurts the most—growth and expansion.
Filed under “don’t crap where you eat” and “you reap what you sow”, Samsung is reportedly scuttling plans to build a new chip plant in Korea:
A tenuous rumor out of Asia on Wednesday claims Samsung may delay building a new chip fabrication facility for advanced mobile processors due to a suspected diversification in Apple’s supply chain.
Citing “industry sources,” the sometimes reliable DigiTimes said Samsung is “likely” to put off construction of the new plant, allegedly called “Line-17,” over the possibility that the company will lose chip orders from Apple in the coming months.
Sure, it’s all speculation, but when Apple is thinking about not having you make the chips that power its most popular devices you might think about shelving those big expansion plans. Cutting back on growth can expansion is a hard thing for a company to do, especially in a market segment that is only getting larger (mobile device chips).
Smart move by Samsung? I’d say so. Heck when one of your clients sues you, and wins, for violating its patents, you know in the long run it’s not going to end well for you.
The real question is, however, can anyone make chips as well, and in quantity, like Samsung is doing now? Sure TSMC is getting ready for production (as per rumors) and could be ready in early 2013 with chips…I’m betting Apple isn’t going to make a huge supplier switch unless everything is absolutely perfect.