Samsung Will Dedicate Half of Processor Production to Apple

Samsung is said to be ready to quadruple the production of its mobile processor chips and devote half of all its output to Apple, according to the The Korean Times.

Despite the smartphone and tablet competition, Apple and Samsung seem to be entering a new era of cooperation after the two companies had a minor falling out in 2008.

“Samsung has agreed with Apple to quadruple monthly shipments of its mobile AP chips to 20,000 sheets throughout this year from 5,000 last year,” said an industry source, citing Samsung’s suppliers as the source, on Wednesday.

Samsung was also reported to be building a US$3.6 billion computer chip plant in Austin, Texas. Apple has a major financial and support center in Austin.

That’s also a major blow to local medium-sized tablet PC makers as Apple is more profitable and lucrative for Samsung,” said [an] anonymous executive.

Apple also buys Flash memory and SSDs from Samsung. It seems that these two companies have realized that the combined power of their cooperation is a rising tide that will float both their boats past the competition.