Qualcomm, AMD upset that TSMC bends over backward for Apple
Qualcomm and AMD want to diversify their supply chain
Yes, sometimes you can’t tell the players without a scorecard. After Samsung manufactured the Snapdragon 835 and Snapdragon 845 SoCs, Qualcomm left Samsung for TSMC’s 7nm process used to build the Snapdragon 855 and Snapdragon 865 chipsets. Qualcomm returned to Samsung last year for the 5nm Snapdragon 888 chipset.
Obtaining the chips that a company requires is a difficult task these days thanks to the global shortage. Software is another story. A good example of this is the sad tale of Huawei as the Chinese manufacturer should, by all rights, be the top smartphone company in the world. When the U.S. cut off its access to its suppliers in the states, Huawei countered the loss of access to Google mobile services (GMS) by developing its own operating system and ecosystem.
Tech firms need to diversify their supply chains
Huawei’s experience is also a cautionary tale of what could happen to a manufacturer that relies too much on supplies from one region of the country. Huawei was spending billions in the U.S. every year for supplies and when it was cut off, it had to scramble in order to continue making phones. As a result of the U.S. actions against Huawei, its third-quarter revenue declined 38% year-over-year.
Another worry, which is the fear expressed by Qualcomm and Samsung, is that TSMC will bend over backward for Apple leaving it unable to find the production capacity to build chips for other firms.