Samsung and SK Hynix, two of the largest memory chip manufacturers in the world, recently entered a cross-licensing agreement that will have broad implications beyond the realm of copyright law. SiliconANGLE Senior Managing Editor Kristen Nicole provided her insights into the unexpected alliance in an interview with News Desk host Kristin Feledy.

According to Kristen, the newly announced pact will enable the South Korean rivals to resolve their back-and-forth legal conflict and free up more resources for innovation. The deal was unanticipated, she notes, but it didn’t come as too big of a surprise in light of the current industry climate.

Kristen explains that the rapidly growing demand for mobile devices is putting pressure on component manufacturers to bolster production volumes. Samsung’s partnership with SK will help it keep up with customer demands and give it more sway over Apple, its biggest client and competitor.

All this maneuvering has not gone unnoticed by the Cupertino-based consumer electronics giant. Kristen highlights that Apple is actively trying to diversify its supply chain in an effort to eliminate – or at least dramatically reduce – its dependence on Samsung silicon.

A few days ago, a semiconductor firm called Taiwan Semiconductor Manufacturing Company (TSMC) disclosed that it has signed a supply deal with Apple to manufacture chips for upcoming iPads and iPhones. Kristen says that the deal is a big win for TMSC, and points out that Samsung will be able to easily survive the loss of its best customer. Ending the relationship might even prove to be beneficial on the long run.

Check out the video below for the full analysis, including Kristen’s take on the overwhelming popularity of Apple devices in South Korea.