Apple has reportedly started receiving shipments of processors bound for the iPhone 6 from chip-maker Taiwan Semiconductor Manucafturing Co. (TSMC). For several years, Samsung has been the exclusive provider of the chips found in Apple’s mobile devices. The problem for Apple is that Samsung is their chief smartphone rival. Diversifying their suppliers means that Apple can reduce the amount of business it does with a primary competitor, while also giving them a better position in matters such as price negotiations, according to the Wall Street Journal:
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 said.
TSMC is currently the world’s largest chip manufacturer by revenue, and has long been rumored to be a new potential supplier of Apple’s mobile processors.
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Source: Wall Street Journal