Although Samsung owns and operates enormous fabs in its native Korea, for the first time it is turning its nose up on in-house and placing orders with Taiwan.
Samsung is reported to have placed a large order of between five to seven million for embedded MMC, or eMMC controllers with Faraday Technology.
Faraday is a partner of Taiwan's huge chip manufacturer UMC, which will manufacture the eMMC chips for Samsung at the 65nm process.
According to the Digitimes' sources, the shipments will roll out in the last quarter of this year.
Samsung is perfectly capable of producing its own eMMC chips, so, if true, it's bizarre that the Korean electronics outfit is outsourcing to Taiwan.
Taiwan's memory industry has long feared Samsung as a monopolist, with Kingston's boss David Sun advising an unholy alliance against the company. Indeed, Kingston, SanDisk, Micron and Phison all look at eMMC-interface NAND, and have reportedly decided to ramp up production.