It might seem a little strange to learn that Apple uses one of its major smartphone rivals to make its processors. It seems Apple agrees, as one new report claims that the company is about to partner with a new chip manufacturer.
Apple’s A4 processor, as found in the iPad, iPhone 4 and fourth generation iPod touch, is actually designed and built by Samsung to Apple’s specification. Considering Samsung is also the second largest handset manufacturer in the world, and about to launch its second (and third) Android-powered tablet, it’s perhaps unsurprising to hear that Apple might be looking to break away.
EETimes claims that Apple and Taiwan Semiconductor Manufacturing Co (TSMC) have entered into a “foundry relationship” which will see the latter manufacturing the new A5 CPU (which will be in the iPad 2 and iPhone 5) for Apple.
The A5 is built using a 40 nanometer process, but it’s rumoured that Apple is also working with TSMC on a future 28 nanometer part.
via EETimes and IntoMobile
YOU SHOULD READ – iPad 2 causes Samsung to reconsider Galaxy Tab 10.1 pricing and “inadequate” parts

