Apple now makes its new Mac Pro in the US, the company also announced it was building a new manufacturing plant to produce sapphire glass for its future devices.
Now according to a recent report, Apple may shift production of its new Apple A7 processors to New York, the processors are currently made by Samsung in Texas.
The news comes from a report from the , who have said that the processors will be made by GlobalFoundries in the town of Malta in New York at their Fab 8 facility.
Apple’s Shift in Manufacturing Strategy
There have been rumors for a while that Apple is trying to switch to other manufacturers and not rely on Samsung so much for the production of various components for their iOS devices. This move is seen as part of Apple’s broader strategy to diversify its supply chain and reduce dependency on a single supplier. By shifting production to GlobalFoundries, Apple aims to mitigate risks associated with supply chain disruptions and geopolitical tensions.
Apple and Samsung have been fighting it out in court over various patent disputes, despite this Samsung has been producing a wide range of components from displays to processors for Apple’s devices. The legal battles between the two tech giants have been ongoing for years, involving numerous lawsuits and counter-lawsuits over intellectual property rights. This contentious relationship has likely fueled Apple’s desire to seek alternative suppliers.
Impact on the Semiconductor Industry
The potential shift of Apple A7 processor production to GlobalFoundries could have significant implications for the semiconductor industry. GlobalFoundries is one of the world’s leading semiconductor foundries, and securing a contract with Apple would be a major win for the company. It would not only boost GlobalFoundries’ revenue but also enhance its reputation as a reliable supplier of high-performance chips.
Moreover, this move could intensify competition among semiconductor manufacturers. Companies like TSMC (Taiwan Semiconductor Manufacturing Company) and Intel, which are also key players in the industry, may feel the pressure to innovate and offer competitive pricing to attract similar high-profile clients. This increased competition could lead to advancements in chip technology and potentially lower costs for consumers.
We also heard a rumor that Apple had asked Samsung to help them produce more Retina displays for the new iPad Mini, Apple had been using other manufacturers to make the display. This indicates that while Apple is seeking to reduce its reliance on Samsung, it still recognizes the company’s expertise in certain areas. The Retina display is a critical component of Apple’s devices, known for its high resolution and vibrant colors, and ensuring a steady supply is crucial for meeting consumer demand.
In conclusion, Apple’s potential shift of A7 processor production to GlobalFoundries in New York represents a strategic move to diversify its supply chain and reduce dependency on Samsung. This decision could have far-reaching effects on the semiconductor industry, driving competition and innovation. While Apple continues to navigate its complex relationship with Samsung, it remains committed to delivering high-quality components for its devices.
Source The Verge
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