Samsung will be the preferred chip-manufacturing partner for Apple, a new report suggests. Samsung will replace Taiwan Semiconductor Manufacturing Company (TSMC) as the primary supplier.
Until now Samsung was competing with TSMC to produce Apple A-series application processors. But it looks like Apple has put all its faith on Samsung and signed a new contract.
Sources familiar with this development told The Korean Times that starting from 2016 Samsung will produce 80% of Apple’s A-series application processors and TSMC will produce the remaining 20%.
“Apple has designated Samsung as the primary supplier of its next A-series chips powering iOS devices from 2016 as the alliance with GlobalFoundries (GF) enabled Samsung to cut off capacity risk,” a source familiar with the deal said.”
A significant reason for Samsung coming up trumps in its negotiations with Apple is Samsung’s recent partnership with GlobalFoundries, which has allowed it to produce sufficient quantities of processors to meet Apple’s demands. Chip production is reportedly set to start early next year, and will take place in Giheung, Gyeonggi Province, in Austin, Texas, and New York.
Samsung recently revealed in the recent earnings call that it is producing 14-nanometer chips for an unidentified customer. Samsung had a huge drop in profit during the last quarter.