Apple Sourcing Flash Memory from Japan to Minimize Reliance on Samsung

Tweet

It’s no secret that Apple and Samsung are in conflict about their respective technology and design patents. But, while Apple is still Samsung’s biggest customer, it seems Apple wants to reduce its reliance on its business frienemy, and is looking to source memory chips from other suppliers.

Image

Apple was earlier reported to have signed definitive agreements with Taiwanese firm TSMC for the production of upcoming A6 and A7 chips. Apple is likely to have bypassed Samsung, which was a regular supplier of current A4 and A5 chips that power iPhones, iPads and iPod Touches. This move was seen as an effort to reduce reliance amid the two companies’ patent disputes. But, with Apple looking to Japanese companies for flash memory chips, this might signal that the company’s relationship with Samsung is going south, and without a chance of improving.

DigiTmes reports that Apple has contracted Japanese firms Toshiba and Elpida for the supply of DRAM and NAND flash. Sources say that “Apple has moved to reduce its reliance on memory supplies from Samsung Electronics,” and that Apple has “procured more NAND flash parts from Toshiba, and mobile RAM from Elpida.”

To date, Apple is Samsung’s biggest customer. This year, Samsung’s projected orders from Apple are at $7.8 billion, a 36% improvement over 2010′s $5.7 billion. Apple is noted to have the world’s biggest demand for memory chips, due to flash storage requirements in its computers, tablets, smartphones and media players. Samsung, meanwhile, is currently still a major supplier of memory chips, with 40% market share in DRAM chips and 30% share in NAND flash. All this might be about to change, though,because of the legal bickering between the two companies, which have gone as far as either firm threatening to file intellectual property infringement charges even before the competing product ships in the intended market. Will Samsung be strong enough to survive amid the possible loss of its biggest client?