Skip to main content

Report: GlobalFoundries Apple tie-in not as big a deal as it sounds, might be overflow supply line

Suggestions that Apple is looking to chipmaker GlobalFoundries to reduce its reliance on Samsung chips are rather wide of the mark, according to sources cited by AllThingsD. The rumors followed a story in the Albany Times Union that Apple might be looking to the Malta, New York, chipmaker to make iPhone and iPad chips.

In the most likely scenario, Samsung will still be the primary manufacturer of Apple’s chips for the iPhone and iPad, they said, continuing the role it has played since the earliest days of the iPhone: Building the chips that Apple designs under contract […]

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 … 

So, essentially nothing changes. Apple still hires Samsung to make its iPhone and iPad chips, Samsung will merely use GlobalFoundries as over-flow capacity for either its own chips or Apple chips as needed.

FTC: We use income earning auto affiliate links. More.

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

Comments

  1. Steffen Jobbs - 10 years ago

    What is Apple’s official line on this story? If it doesn’t come directly from Apple, it’s probably just another BS story fabricated by someone looking for attention.

  2. Scott C - 10 years ago

    Global has a significant amount of fab to fill. This could actually be a strong partnership in the future.

Author

Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!


Ben Lovejoy's favorite gear