samsung

Apple and Samsung have struck a major deal, in which Samsung Electronics will supply Apple with the majority of the application processors used in the iPhone and iPad, according to the Korea Times. Apple has reportedly chosen Samsung over TSMC, in a deal worth billions.

Samsung will supply Apple with 80 percent of the A-Series chips, and TSMC will pick-up the manufacturing of the remaining chips. The Korea Times reports Apple chose Samsung over TSMC because of the South Korea-based company’s partnership with GlobalFoundries, which will allow it to better mass produce chips for Apple.

Production of the chips will start early next year at Samsung’s local factory in Giheung, Gyeonggi Province, and the volume will grow into 2016 as Samsung plans to use its facilities in Austin, Texas and the GF-owned factory in New York for increased output.

Samsung and Apple haven’t officially confirmed the deal. However, Samsung Electronics President Kim Ki-nam said on a recent conference call that its logic chip division will bolster its profits next year. Furthermore,  Ki-nam quipped that his company’s fortunes “will improve positively” once sales are boosted thanks to the lucrative Apple chip deal believed to be the A9 processor in 2015.

The relationship between Samsung Electronics and Apple has always been an awkward one, as the consumer division of Samsung has been in a long patent war with Apple. However, that hasn’t stopped the two from working together.

[Korea Times]

  • Cody

    Are ones going to be more defective than the others considering they are going to be made in different factories and companies?
    I don’t know man. But after this memory chip problem with the 6 and 6 plus Apple needs to be careful about which company manufactures what.
    I know, I know. Samsung has been making chips for Apple since forever and TSMC as well, and no problems at all. But still..

  • Anmol Malhotra

    Show me A9 with 2GB RAM! And quad core 2gHz processor then iPhone 6s will be a beast!! Then i’m going to upgrade my 4S 😀

  • Vatsal Manot

    Meh.

  • Jeff Maxwell

    I’m still not totally convinced that this deal is complete. The sourcing for it is pretty sketchy and nobody but Korea Times is reporting it. It certainly wouldn’t surprise me but 80% is a pretty big number given how much effort Apple has put into spreading their supply chain.

  • Jeffrey

    Damn it Apple…

  • Danny switcher

    Profit is back but victory is gone.

  • ck125

    Samsung is the only one who can keep up with Apple demand, and won’t have a ton of issues. Look at the MacBook screens and the issues Lg ones had, yet weren’t there on the Samsung screens.

  • Tim

    This cat and mouse game has been on for years now. If Apple can’t start up its own logic chip division, Samsung must be rich AF

    • Rowan09

      It doesn’t make sense to only produce chips for yourself in my opinion, so I doubt Apple will manufacture their own chips by themselves. They already do the design and I doubt they will do all the leg work.

  • Rowan09

    Well Samsung must be jumping for joy because their stock and profits will now be up.