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.