Samsung Will Still Be The One Producing Chips For Apple

On Monday, Nov. 11, the Times Union ran a story that said GlobalFoundries would soon be producing a series of A-chips for Apple. As it turns out, the story missed the mark in a big way, according to AllThingsD. According to checks with “industry sources,” AllThingsD has determined that GlobalFoundries is not replacing Samsung as the company’s primary chip maker. Instead, Samsung will use the company for what is known as “flex capacity.” This means that when chip supplies aren’t matching up with demand, Samsung can use a plant owned by GlobalFoundries to assist. The report notes that a similar arrangement is already in operation with a foundry in Austin, Texas. They note, “Occasionally there will be times when Samsung has to balance the demand on that fab in order to meet both the needs of its primary foundry customer — Apple — as well as its own internal needs for smartphone and tablet chips.” Regardless of the official arrangement, this is still good news for folks in Malta, N.Y. It is here where GlobalFoundries operates Fab 8, the most likely location Samsung will use to produce chips, when necessary. GlobalFoundries is the second-largest foundry company in the world, according to IC Insights. They rank ahead of Samsung in this regard. See also: Apple Holds Over 40 Percent Of US Smartphone Subscribers, But Samsung Is Gaining, and Benchmark Battle: iPhone 5s Versus Galaxy Note 3.

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