Reuters reports that Apple has reduced memory chip – both dynamic random access memory (DRAM) chips and NAND memory chips orders to Samsung for the iPhone, iPad and iPod touch.
The report claims that Apple has dropped Samsung from its list of memory suppliers for the first batch of iPhone 5, which is widely expected to be unveiled at the September 12 media event, announced earlier in the week.
Apple has picked Samsung’s rivals – Japan’s Toshiba Corp, Elpida Memory and Korea’s SK Hynix to supply DRAM and NAND chips.
Apple has been cutting back its orders from Samsung as it seeks to diversify its memory chip supply lines, although the South Korean firm remains on the list of initial suppliers for the new iPhone, the source told Reuters. The person declined to be named because the negotiations are confidential.
The report insists that its a strategic move by Apple to diversify its supply chain rather than a fall out of the patent war with the Korean company.
Apple reportedly tried to invest over $1 billion in Taiwan Semiconductor Manufacturing Co. (TSMC) – the world’s largest custom maker of chips to get exclusive access to its chips supplies. But the offer was rejected by TSMC. Apple was trying to strike a deal with TSMC as it would give it an alternative supplier and reduce its dependence on Samsung, which is currently the sole supplier of the main chips for iPhone, iPad and iPod touch.