Apple goes to TSMC. Samsung says "Oh no you didn't!. Girl! find yo flash 'some place else!"
That would be too simplistic. Samsung and Apple have been very successful partners and not-withstanding lawsuits around curved edges and I doubt they would jeopardize their existing business. Apple most likely has contractual guarantees on flash supplies from Samsung.
I think that shortages of NAND flash are almost guaranteed later this year unless the entire world economy goes into recession. It's time for NAND producers to make a little money for a change. Another fast growing source of demand for NAND chips is the solid state drive market.
Apple is not vertically integrated because it chooses not to be. It's a business decision. The US government really has very little role in this strategic decision. US based Micron/Intel fabs produce NAND flash chips and we do have NAND flash being manufactured in the US.
Duane, that's an excellent point. But there are a whole bunch of human decisions that put companies behind the eight ball. Management execs aren't going to turn down huge business from Apple or IBM if it throws their model over into an 80/20 situation.
On the other hand, how many companies are there like ADI which I boasts its largest customer is 5 % of the business?
Tough calls... and I'd hate to be in their shoes!