Samsung reportedly building processors for Apple Watch, analysts revising shipment forecasts


Samsung Electronics’ chip division will be building the processor inside the first-generation Apple Watch set to launch in March, according to supply chain sources at Digitimes. Using the 28nm process technology, Apple’s order to Samsung is said to call for 3,000 to 4,000 12-inch wafers monthly. 

The processor, built by Samsung, will be inside Apple’s S1 system-in-package (SiP) within the Apple Watch. The S1 package also consists of mobile DRAM, NAND flash and other peripheral chips.

Advanced Semiconductor Engineering (ASE) is the provider of SiP S1 modules for the Apple Watch, but it’s not clear which firms will be behind the other components like the DRAM.

Furthermore, Digitimes reports many analysts in the Asia region have cut their forecasts for first-generation Apple Watch shipments to as low as around 10 million units in 2015. Analysts are more optimistic about sales of second-generation Apple Watch with improved software and better features.

The second-generation Apple Watch, which could still be a ways away, is said to be seeing a race for who builds the processor. Samsung and Taiwan Semiconductor Manufacturing Company (TSMC) with their 1Xnm FinFET process technologies are expected to be in the running.

It’s worth noting that Digitimes can be hit or miss in its reporting on Apple, but has been correct in the past when it comes to chip-specific reports.

9to5mac reported earlier this week that Apple plans to launch the Apple Watch in the US in March. Analysts have been conflicted on how many of the wearable will be sold; Morgan Stanley analyst Katy Huberty said investors are underestimating demand for the upcoming Apple Watch.

Source: Digitimes