GlobalFoundries To Start Chipmaking For Apple Is Still A Rumor

Posted: Nov 12 2013, 7:23am CST | by , in News | Apple

GlobalFoundries to Start Chipmaking for Apple is Still a Rumor

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While GlobalFoundries is said to start the process of chipmaking for Apple's iPhone and iPads in a upstate New York factory, the whole thing still has the aura of rumor about it. It may be more hype and Samsung might still remain in its role as Apple’s major chipmaker.

The whole thing sounds too good to be true. And it may not be true. GlobalFoundries is said to begin manufacturing chips for Apple’s iPhones and iPads. However, Samsung remains the #1 maker of chips for Apple in the present times. Actually, the scenario goes like this: Samsung is to use GlobalFoundries as an additional manufacturing space. This is a common action that is often taken by manufacturing companies when their own capacity to create becomes limited.

Samsung already makes a sufficient amount of microchips at its Fab in Austin, Texas. However, Apple’s requirements have outstripped the supply lines. Therefore, GlobalFoundries has become a sort of substitute and makeshift agency in times of emergency.

Sources close to the situation told AllThingsD, "the deal that appears to be taking shape looks more like this: Samsung will use GlobalFoundries for what is known as 'flex capacity.' This is a long-standing industry practice under which a chip manufacturer pays to occasionally use another company’s factories when demand on their own factory is running higher than they would like, and they need a little help."

Workers from Samsung have been seen at the Malta, New York site known as Fab 8. Here GlobalFoundries runs its factories. Samsung representatives have shifted some of the chipmaking blueprints to the new manufacturing platform. GlobalFoundries is the second largest chip manufacturer on a global level followed by Samsung.

Meanwhile, when contacted, spokespersons at Apple refused to comment any further on the matter. This secretive attitude has become the hallmark of not only Apple but many other huge conglomerates throughout the economic world of today. It keeps the competitors and the public guessing in a suspense game that goes on forever.

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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
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