Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Apple/Mac
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Will Samsung Make the Next iPhone Chip?
Will Samsung Make the Next iPhone Chip?

By Barry Levine
July 15, 2013 3:01PM

    Bookmark and Share
Samsung had previously provided the iPhone processor to Apple, but last year, as the patent war raged, Samsung lost to TSMC its Apple contract to supply A8 processor chips. The A8 processor incorporates a 20 nm manufacturing process, while the A9 utilizes 14 nm. Samsung's development of state-of-the-art 14 nm technology is seen as being a key factor in it regaining Apple's business.
 



The Apple and Samsung legal departments may be engaged in a worldwide legal war, but apparently their chipmaking departments have other priorities. According to a recent report, Samsung will manufacture Apple's new A9 processor chips -- although there are some contradictory reports about whether the companies are actually ready to do business again.

The report, in Monday's edition of The Korea Economic Daily, said that Samsung Electronics has signed a contract to supply Apple's A9 mobile application processor, beginning in 2015. The processor, which is used in Apple's iPhone, is destined for version 7 of that popular device. The Korea Herald has recently reported that Samsung and Apple may have agreed on a three-year deal.

But there are contradictory rumors floating around. The DigiTimes of Taiwan has reported that Apple will receive its A8, A9, and A9x chips from the Taiwan Semi-Conductor Manufacturing Company (TSMC), the largest chip foundry in the world by revenue. Some news reports have indicated that Apple and TSMC have been negotiating since 2010, but Apple reportedly wanted to include investment in TSMC or the designation of a facility specifically for its uses. TSMC is said to have resisted that approach. It's not clear from the most recent reports how these issues may have been resolved.

8 Percent to 15 Percent of TSMC's Business

Some analysts have estimated that Apple's orders would account for around 8 percent of TSMC's total business, if Apple outsources about a third of its chip orders to TSMC. This could increase to 15 percent of TSMC's business within two years, if Apple's orders increased to 60 percent of its needs.

Samsung had previously provided the iPhone processor to Apple, but last year, as the patent war raged, Samsung lost to TSMC its Apple contract to supply A8 processor chips. The A8 processor incorporates a 20 nm manufacturing process, while the A9 utilizes 14 nm. Samsung's development of state-of-the-art 14 nm technology is seen as being a key factor in it regaining Apple's processor chip business, assuming that has happened.

Samsung's war with Apple has apparently cost the South Korean company in a variety of ways, including the loss of a contract to provide memory chips for the iPhone 5. Samsung had been supplying chips for Apple's iPhones going back to the first one in 2007. Analysts have estimated that Samsung makes more money on memory chips than on processors.

Expensive R&D

Credit Suisse analyst Randy Abrams told The Wall Street Journal that an Apple-TSMC deal would "represent an important new leading-edge customer for TSMC to help support the expensive R&D" that the foundry needs to maintain its advanced-technology position.

TSMC, based in Taiwan, also has plants in Singapore, Shanghai and the state of Washington in the United States. Another plant is reportedly being built in the U.S., and TSMC's American presence could mesh with Apple's stated intention to construct at least some products in its home country. In December, Apple Chief Executive Tim Cook said his company planned to manufacture some Mac computers in the U.S., which would be the first time in about 10 years.
 

Tell Us What You Think
Comment:

Name:





 Apple/Mac
1.   Will Next OS X Bring New Apple Grief?
2.   Apple and Samsung Feel the Heat
3.   Earnings, Excitement Grow for Apple
4.   Mac OS Yosemite Beta 4 Released
5.   Apple Smart Watch Patent Surfaces


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 

Mobile Technology Spotlight
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Is the Amazon Fire Phone a Winner?
A late entry into a packed category of smartphones, Amazon's Fire phone offers a variety of unique features. Now, the reviewers are assessing if they're enough to make the phone stand out.
 
Review: Amazon Fire Offers New Ways To Use Phones
The Fire phone uses Android, but Amazon has modified it to the point that it's barely recognizable. That means the phone offers new ways to navigate, discover and, of course, shop.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.