Is it too early to start thinking about the iPhone 7? Not for Apple’s suppliers it’s not. Fabrizio Sciami/Flickr CC
Samsung will snap up the majority of the next generation iPhone A9 chip orders, while Taiwan Semiconductor Manufacturing Company (TSMC) will manufacture the chips for the next iPad devices, according to a new report coming out of China.
Although it was previously reported that the two companies were locked in a tussle to pick up the Apple orders, Samsung apparently beat out TSMC by quoting Apple lower prices for the 14nm FinFET process production. Samsung has upped its game to secure Apple orders following its posted dismal Q3 earnings, which were down a whopping 60 percent in operating profit from the same period in 2013.
Apple has apparently put its faith in Samsung to build the A-series application processors for its next generation iPhones and iPads, according to a new report coming out of Korea.
As of recently, Samsung was competing with Taiwan Semiconductor Manufacturing Company (TSMC) to build the chips, which carry a contract said to be worth “billions of dollars.”
Unlike conventional memory chips, application processors reportedly count as logic chips and are said to carry much higher margins. From 2016, Samsung will supply 80% of the APs used in Apple devices, while TSMC will provide the remaining 20%.
Competition is heating up between Samsung and Taiwan Semiconductor Manufacturing Company (TSMC) to build Apple’s next generation A9 chips, according to a new report citing industry sources.
TSMC is currently manufacturing the majority of the A8 chips used in Apple’s latest iPhones, thanks to a deal inked in 2013. Samsung, however, is keen to reestablish its previous position as the sole provider of Apple’s A-series chips — and is willing to lower its quotes to do so.
Samsung is also pushing the fact that it can provide other services to Apple, including the manufacture of flash memory and backend services in-house.
The 2nd gen iPad Air’s A8X chip and logic board. Photo: Apple.Club.tw
There have been plenty of reports lately about Apple’s plans to unleash a giant-sized 12.9-inch iPad early next year, and according to a new report from Digitimes, Taiwan Semiconductor Manufacturing Company (TSMC) has landed the orders to make its soup-up processor.
Apple is still reliant on Samsung for many of the iPhone’s internal components, including the fabrication of its almighty A-series processors, but in an effort to secure more processor orders from Apple, Taiwan Semiconductor Manufacturing Company (TSMC) is already ahead of schedule with production of the next-generation A9 processor.
In a recent press conference, Samsung executives admitted how its role as third party chip manufacturer (something which makes up half of Samsung’s microprocessor business) is being negatively affected by Apple’s decision to work with other partners like TSMC.
There’s a line in 1990’s The Godfather: Part III when Al Pacino’s Michael describes his inability to extract his family from a life of crime, saying: “Just when I thought I was out, they pull me back in.”
Much the same could be said for Apple’s relationship with long-time chip supplier and bitter rival, Samsung. Having previously heard that Apple was handing the majority of the iPhone 6 chip orders to Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a new report suggests that TMSMC is now likely to lose future orders (most likely for the next-next generation iPhone 6s) back to Samsung.
KGI Securities analyst Michael Liu claims that TSMC will be supplanted by Samsung in the production of 14-nanometre A-series smartphone chips for Apple and Qualcomm, beginning in the second half of 2015.
Taiwan Semiconductor Manufacturing Co. (TSMC) has reportedly started shipping its first batch of iPhone and iPad microprocessors to Apple, according to sources familiar with the matter.
By making microprocessors for Apple, TSMC is taking over a role previously carried out by Samsung. Some skeptics had previously suggested that TSMC — which is the world’s biggest contract chipmaker in terms of revenue — wouldn’t be able to deliver the complex chips to Apple’s satisfaction.
Although reports have surfaced that Apple may be building a top secret $10 billion chip fab, right now, the vast majority of Apple’s A-series chips are made by Samsung. This is obviously not an ideal situation, as it gives Apple’s arch smartphone rival the advantage of knowing what the iPhone-maker is planning on doing next, at least from a silicon perspective.
It looks like Apple may soon be able to rely less on its nemesis when it comes to building chips, though. A new report says that Taiwan Semiconductor Manufacturing Company (TSMC) will largely take over for Samsung in making iPhone and iPad chips in the future. And they’ll be pretty crazy advanced chips, too, at least if the rumors can be believed.
As the battle for global smartphone supremacy has matured into just a two company battle pitting Apple against Samsung, Cupertino is looking to add more between itself and its archenemy by becoming less dependent on Samsung to build chips like the A7 processor featured in the iPhone 5s.
While Apple can’t totally rid itself of Samsung components just yet, a new report claims that Apple plans to lean on Taiwan Semiconductor Manufacturing Co. (TSMC) to handle more of the manufacturing of the A8 processor next year, rather than giving all the work to Samsung.