Apple - iPad 5 Event - Retail - iPhone Launch - 068

According to a new report, Apple has dropped Samsung from the production run of the new A8 processor that should feature in the iPhone 6 and the follow-up to the iPad Air.

TechNews Taiwan revealed in a new report today that Apple has opted to rely solely on Taiwan Semiconductor Manufacturing (TSMC) for the production run of the A8 chip it will be using this year. According to sources, Samsung was showing low yields of producing the 20 nm chip, and that has caused Apple to rely entirely on TSMC to meet demand. The company was already expected to produce 70 percent of the production run with Samsung picking up the remaining 30 percent.

While TSMC is the smaller company to be sure, apparently its production so far on the A8 has been smoother than anticipated giving Apple confidence that the company will be able to meet the demand. The Taiwanese company has also expanded its production capabilities since the A7 production run and it should be able to accommodate the increased yields.

Apparently this split over the A8 will not be a permanent departure of Apple using Samsung for production, however. The A9 chip, which is expected to be used in the 2016 production line, will start off with TSMC producing 60 percent of those chips at 16 nm, and then Samsung producing the other 40 percent at 14 nm.