Apple could hand production of processors to TSMC -

Apple may be handing the production of its A4 and A5 processors over to Taiwan Semiconductor Manufacturing Company as current producer Samsung becomes a rival in the smartphone and tablet market. That's according to Taiwanese wire Digitimes.

Apple is currently exclusively using processors, with the A4 and the S5PC100 used in the iPhone 3GS developed and manufactured by the Korean firm.

However with Samsung in direct competition with upcoming 4G mobile devices and the Galaxy tab, Digitimes has reported that Apple has sought a more neutral manufacturer amid concerns over leakage of its new technology.

It is even though that when Samsung was unable to handle a number of A4 orders due to strong demand in 2010, Apple apparently threw some work TSMC’s way.

It is thought then that TSMC could be producing the upcoming, and much discussed iPad 2, which will have an enhanced version of the A4, while the semiconductor firm could also have exclusivity on production of the A5, which will power the next generation of iPhone.