Bloomberg reports Samsung has been chosen by Apple to make chips for the next iPhone, taking the business from Taiwan Semiconductor.
Samsung has reclaimed its spot as Apple’s supplier. TSMC made the chips for the iPhone 6, however before that, Samsung’s chips were king for iPhones.
There’s no official confirmation from Apple and Samsung – just Bloomberg citing “people with direct knowledge of the matter”.
Readers may be confused why Apple would choose a competitor to manufacture its chips, but it’s worth noting the mobile and semiconductor businesses of Samsung are completely separate and run by different executives.
The Galaxy smartphones in Samsung Mobile’s division have been struggling after the iPhone 6 has taken markets like the United States and China by storm. Samsung’s new deal could help boost the balance sheet of the entire Samsung conglomerate.
Korea Times reported in November that Samsung would replace TSMC, but not until 2016. If Bloomberg’s report turns to be true, Samsung is getting Apple’s business earlier than believed.
Researcher Gartner recently reported Apple spent $25.8 billion on chips last year, accounting for 7.6 percent of industry purchases – making it a pretty big win for Samsung.