Will the move hurt Samsung's stock price?
A new rumor is making the rounds having to so with Samsung and Apple. This time it's not a new legal battle over patents, rather it is a rumor that Samsung is going to lose the contract to produce chips for Apple devices. The rumor comes from unnamed sources who claim that Apple will stop A8 processor production with Samsung according to MacObserver.
Don't Miss: Victoria's Secret Fashion Show 2016
That production will be moved to TSMC according to the sources. The reason for the move is said to be the low yields that Samsung is seeing with its new 20nm process. TSMC is reportedly having very good luck with its 20nm process tech.
In fact, TSMC is said to have had a smoother transition to the new process than ever before and the fastest ramping yet. The last time Apple pulled chip production from Samsung; it had a huge impact on Samsung's stock. It's unclear at this time if the same impact will be felt by Samsung this time.
The source also said that Samsung and TSMC are currently competing to determine which will produce the Apple A9 processor. That processor is the presumed successor to the current A8. It continues to surprise that Apple pays so much money to its rival Samsung to build its processors. It would come as no surprise to see Apple having TSMC build its chips since TSMC doesn’t compete with Apple anywhere.