Apple is moving away from Samsung Electronics (005930KS), speculating that it has given a “major partnership” for its next chip design, the “A7,” to Taiwan Semiconductor (TSM), and that it is considering Intel (INTC), as well.
What just happened?
Apple is transitioning from ARM to INTEL.
Why? Because TSM does not have the capacity or production capacity for the high end chips needed to cover Apple's chip demand. As 22nm and 14nm INTEL chips hit the market ARM chips will soon no longer be able to compete with INTEL chips.
In the short term TSM will produce the A7 while Apple products increasingly adopt the premium performance of INTEL's chips to stay competitive.
Expect more hardware company defections from ARM chips to INTEL as INTEL slaughters the competition.
I believe the timing on this will be Q1 2013.
Looks like they're hedging their bets. Common sense says this will happen. Next question is where is QCOM, Google, NVDA, MSFT going to get their chips. TSM can't supply the customes they have let alone handle an increase from AAPL. Only other source would be Samsung and nobody wants them stealing their secrets in manufacturing like they did to AAPL.