Apple's efforts to reduce its dependence on Samsung Electronics' application processors (APs) seems to take a shape as the company has reportedly placed an order to TSMC for its next-generation AP, dubbed the A8. Business Korea cited industry sources and reported that TSMC?s AP supply to Apple will be increased down the road, capitalizing on its newly established 20 nm production lines, which will be put into operation in January next year.

Curently, Samsung is supplying most of the APs for the iPhone and iPad.

Credit Suisse researcher Andy Abrams also predicted that the APs for Apple would account for 6.5% of TSMC's total sales for next year. Daiwa Capital Markets analyst Eric Chen estimated the percentage to be over 10%. The Taiwanese company recorded US$5.53 billion in sales in the third quarter of this year.

At an Analyst Day event held on November 6, Samsung Electronics announced that it would apply 14 nm and 10 nm microfabrication processes to its foundry business. These are a couple of generations ahead of TSMC?s 16 nm process. "We are currently working on the 10 nm process and will provide our foundry customers with advanced technologies such as FinFET and 10 nm," said Wu Nam-seong, president of the System LSI Business Unit of the DS Division of Samsung Electronics.