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Samsung Becomes Apple’s Exclusive Chip Supplier, A9 At Least

According to the rumors, Apple (NASDAQ:AAPL) is looking forward to shake hands with Samsung Electronics in order to pass on its manufacturing work of central chips in the next generation iPhones. The manufacturing work for central chips in iPhones is currently done by Taiwan Semiconductor Manufacturing Co (TSMC).samsung-factory

The South Korean chip maker is soon to start the mass production of Apple A9 processor chips. The production will take place in Giheung based plant in South Korea. The deal is in the negotiation phase and hence, its extensive details have not been disclosed yet.

A business partner of Samsung, Globalfoundries Inc. will also be involved with the production of Apple A9 processor chips. The latter will be responsible for taking additional orders, as expressed in the new agreement.
The South Korean phone maker lost its exclusivity deal with Apple last year to TSMC. Samsung somehow managed to acquire the deal this time by boosting the expenditures for the same.

According to the analysts, the deal of Samsung with Apple will pave way to more business opportunities. If Globalfoundaries Inc. is able to increase the yield of Apple chips while implementing the technology of Samsung, it would help the world’s second largest chipmaker to land a deal with Qualcomm as well.

The representatives of the South Korean phone maker were unavailable to comment on the subject but the spokespersons of Globalfoundary Inc. indicated that their company is in no mood to disclose any details of the deal to the public yet.

TMSC was responsible for manufacturing A8 processors for Apple that are used in iPhone 6 and iPhone 6 Plus smartphones. TMSC was chosen by Apple after facing serious legal problems with Samsung in the year 2011.

The inclination of Apple to work with Samsung again would definitely help the South Korean phone maker to cover its investments that it had made to claim a top reputation for itself in the chip making industry.

The Apple-Samsung deal will also benefit the former since it can save a lot of money by having a single supplier rather than having a multiple of them.

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About David Mayor

Writer and editor of The Next Digit Media, he takes care of iOS, Apple, Mac and other gadgets. He worked at Apple Inc, before joining to TND Media. He was graduated in Bachelor of Journalism & Mass Communication Degree from Cambridge University. All posts by David

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