Apple is rumored to have signed a deal with TSMC (Taiwan Semiconductor Manufacturing Co) to manufacture the A5 dual-core processor found in the iPad 2. The deal is said to be a foundry relationship. Apple will use TSMC’s 40-nm process for the A5 and will work with TSMC on a 28-nm process too.
This new deal could spell trouble for Samsung, the manufacturer of the A4 processor found on the original iPad.; Samsung also manufacture the processor for the iPhone 4. It is now "unclear" whether Samsung will play any part in building the A5 chip for Apple in the future.