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Samsung mothballs $41bn plant as Apple chip loss looms

08 Nov 2012
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Samsung has delayed construction on a new logic fabrication factory because it expects to lose future Apple chip orders, according to a Digitimes report.

The tense relationship between Samsung and Apple may have deteriorated if the Digitimes rumours are true. According to the site, Samsung has decided to delay the construction of its Line-17 logic fabrication plant because it anticipates a reduction in chip orders from the iPad maker.

Samsung has supplied chips for Apple devices like the iPhone in years past. However, the currently litigious relationship between the two firms could be putting a strain on the partnership.

According to reports, Apple reportedly attempted to work out partnerships with other chipmakers last year. The new partnerships would have meant that Samsung would no longer be the sole supplier of chips for devices like the iPad and iPhone.

Earlier this year, Samsung reported it would be investing $41.8bn in its mobile chip manufacturing operations. The company reported it was using the investment money to build new plants and develop R&D facilities.

Line-17 was expected to be an extension of Samsung's semiconductor facility in Hwaseong, China. The Hwaseong plant reportedly cost Samsung $10bn when it was built in 2011.

Samsung and Apple have had a rocky relationship in the past year. The two firms have been facing off in global litigation over patent infringements for the better part of 2012. Both firms have specifically been attempting to put bans on each other mobile products in a variety of countries.

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James Dohnert

James is a freelance writer and editor. In addition to ClickZ, his work has appeared in publications like V3, The Commonwealth Club,, and Shonen Jump magazine. He studied Journalism at Weber State University.

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