Apple reportedly enlists GlobalFoundries to begin chip production in New York

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Apple(s aapl) is set to begin production of some of its A-Series chips in upstate New York, according to a report from the Times Union. The company has struck a deal with GlobalFoundries to manufacture the chips at its Fab 8 complex in Malta. These chips are the backbone of Apple’s mobile device business, with the latest A7 processor powering the new iPhone 5s, iPad Air and iPad mini with retina display.

Apple has previously relied on Samsung to manufacture these chips. And according to the report, Samsung will aid GlobalFoundries in setting up the manufacturing process used to make the chips. Given the competition in the mobile device space between the two companies, it makes sense that Apple would want to remove itself from its component supply relationship with Samsung. But it isn’t clear if GlobalFoundries will be making the chips in conjunction with Samsung, or if Samsung is simply helping to set up the new production facility.

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Sure – Samsung will “help” GlobalFoundries take away its business and “help” their biggest rival gain manufacturing independence. I’d imagine there’s a certain level of awkwardness among the 3 parties right now.

It would be interesting to see why Apple aren’t making these in China instead. Perhaps it’s easier to maintain their secrecy and in-house knowledge within the states?

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