Apple reportedly has contracted Taiwan Semiconductor Manufacturing (TSM) to start building the A6X chip used in the fourth-gen iPad. Samsung has previously been the manufacturer for Apple's line of chips, but ongoing squabbles between the two technology companies may have played a major role in Apple choosing another partner.
Taiwan Semi will initially do a trial production sometime in the first quarter this year, according to Taiwan's Commercial Times, then move into full scale production later on. It's unclear at this point when Apple products will actually start offering the chips made by Taiwan Semi, as switching manufacturers is a long and complex process.
Apple has had its difficulties with Samsung, as the two companies have been engaged in patent battles in recent years.Apple won a landmark lawsuit against Samsung over the summer, forcing Samsung to pay $1.05 billion in damages.Shares of Apple were higher in Wednesday trading, gaining 3.16% to $548.97, while Taiwan Semiconductor was tacking on 4.72% to trade at $17.97. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV