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Ex-TSMC employee sued for spilling chip secrets to Samsung

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A8 chip
Samsung stealing technology? Say it ain't so!
Photo: Apple

 

Knowing how much is at stake, things can get pretty vicious when you’re a manufacturer with a shot at providing Apple with vital components for its next generation iPhone.

We’ve known for some time that Taiwan Semiconductor Manufacturing Co. and Samsung have been battling it out over who gets picked by Apple to make its forthcoming A9 processors — with Samsung apparently having the advantage currently, due to offering Apple a better deal financially.

TSMC isn’t taking this lying down, however. In fact, the company is currently suing an ex-employee who allegedly leaked R&D secrets to Samsung; thereby allowing it to both catch up in the chip fabrication business.

Samsung will provide bulk of Apple’s A9 chips for iPhone 6s

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A8 chip
Apple's A8 processor violated University of Wisconsin's patent.
Photo: Apple

Apple has been trying to wean itself from being dependent on Samsung’s smartphone components for years, but breaking up is proving nearly impossible to do.

According to a report from Recode, Apple is turning back to Samsung to make the next-generation A9 processors that will make their way into the iPhone and iPad later this year.

Samsung allegedly nabs 75% of Apple’s A9 orders

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Ericsson wants to stop Apple selling iPhones in the United States. Photo: Jim Merithew/Cult of Mac
The iPhone 6s could get by with a little help from Samsung. Photo: Jim Merithew

In public, the big smartphone competition may be between Apple and Samsung, but behind the scenes the faltering Samsung has another battle on its hands: with rival manufacturer TSMC over who gets to build the A9 processor for the next generation iPhone.

And while Samsung is decisively losing the battle to sell the most smartphones in the marketplace, the A9 chip orders could be one clash it is going to emerge victorious from!

50% of U.S. smartphones activated last quarter were iPhones

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The iPhone 6 dominated 2014. Photo: Jim Merithew/Cult of Mac
The iPhone 6 dominated 2014. Photo: Jim Merithew/Cult of Mac

Apple enjoyed historic sales this holiday season, and while the company won’t reveal its official earnings until January 27th, based on the latest smartphone activation report from Consumer Intelligence Research Partners, Apple dominated the holiday shopping season and accounted for 50% of all smartphone activations in Q4 2014.

Tim Cook is likely to announce another record breaking quarter as Apple nearly doubled the number of activations of its closest competitor Samsung, which accounted for a modest 26% of the market.

Check out the surprising graph below:

iPhone 6 is doing better than ever on Samsung’s home turf

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Samsung is after more of Apple's iPhone business.
Samsung vs. Apple is looking more and more like a horrible mismatch. Photo: Jim Merithew/Cult of Mac
Photo: Jim Merithew/Cult of Mac

Thanks to Apple’s continued success in Japan, and Tim Cook’s big push to expand into China, everyone forgets about one of the most revealing markets the iPhone 6 has scored big in: South Korea. Why is South Korea so revealing? Because it’s none other than the stomping ground of longtime Apple rival, Samsung.

According to a report published Wednesday by Counterpoint Research, Apple is now firmly challenging Samsung in its home ground — with market share in the country rising to 33 percent, from less than 15 percent, based on the success of the iPhone 6 and 6 Plus. Samsung’s market share meanwhile plummeted from 60 percent to 46 percent.

Apple Watch wins the wrist war before it starts

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Apple Watch did some monster pre-orders in its first day on sale. Photo: Leander Kahney
The closer we get to Apple Watch, the more advanced it looks in comparison to its competition. Photo: Leander Kahney/Cult of Mac

Ever since Tim Cook unveiled the Apple Watch last September, it’s been one disappointment after another as far as I’m concerned. Apple’s first wearable won’t come in the minimalist form factor of the fitness bracelets I love. Worse yet, the launch version of the fashion-forward device will lack GPS, suffer from underwhelming battery life and fail to offer truly native third-party apps.

For the first time, I realized I would not be buying an Apple product when it first hit the market. “It’s not worth lining up for,” I told my dad when he asked what I thought after the Apple Watch’s big reveal.

But a funny thing happened on the way to Apple Watch’s launch day, which is coming sometime this spring. And I’m not talking about the previously unthinkable — an Apple fan calling the Microsoft Band the best smartwatch on the planet. No, I’m talking about wading through an ungodly sea of really bad smartwatches at International CES earlier this month and seeing indisputable proof of just how innovative and disruptive Apple Watch actually will be.

With HomeKit on horizon, home automation is about to get real

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Wall of Philips remotes. Photo: Jim Merithew/Cult of Mac
Wall of Philips remotes. Photo: Jim Merithew/Cult of Mac
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The year is 2018. After a long day at work, you pull into your driveway, whip out your iPhone 10 Plus and say, “Siri, I’m home.”

Your garage door opens silently, beckoning you to enter the ultra-connected smart home of the future.

As you walk in, your lights turn on. The wife used to get on you about leaving the lights on, but her nagging feels like a distant memory now. Your thermostat cools everything down to a comfortable 69 degrees. Knowing that you pulled into the driveway two minutes ago, your oven has started preheating itself. You usually fix dinner for yourself on Thursdays, so it’s time for frozen pizza.

President of Jony Ive’s old company is now in charge of Samsung design

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It’s not exactly news that Samsung would like be a whole lot more like Apple. And when you compare the sales figures from Samsung’s ailing mobile division to Apple’s thriving iPhone numbers, who can blame it?

But while the South Korea-based tech giant isn’t going to be able to steal away any of the design brains behind Apple’s must-have devices any time soon, it’s trying to do the next best thing: hiring a former boss from the company Jony Ive helped start before he set sale for Apple in the 1990s.

Best of CES 2015: Get a glimpse of the fantastic future

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Photo: Jim Merithew/Cult of Mac
Anything goes at International CES, the world's largest consumer electronics show. Photo: Jim Merithew/Cult of Mac
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LAS VEGAS — Walk the halls of the massive International CES trade show and you’ll be bombarded by an outrageous number of pitches for products with radical new features.

Cult_of_Mac_CES_2015 You can glimpse the shiny happy future of consumer electronics at the show, although some of the innovations on display are clearly destined for the dustbin of gadget history.

At the biggest booths, reps for big companies like Sony and Samsung — but, sadly, not Apple — talk up the latest additions to their product lines. At smaller booths, inventors show off prototypes for products that may not ever roll off an assembly line. There’s a nonstop blitz of “world’s first” products.

It’s impossible to see everything, but it’s a blast trying. Here are Cult of Mac’s picks for the best of CES 2015, from Lightning-enabled headphones and massive TVs to drones and self-adjusting belts.

Samsung may play a part in building the Apple Watch

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Apple Watch did some monster pre-orders in its first day on sale. Photo: Leander Kahney
Samsung will reportedly have a hand in the Apple Watch. Photo: Leander Kahney/Cult of Mac

Samsung reportedly has Apple’s blessing to manufacture the processors for the Apple Watch, which will be allegedly be made using the company’s 28nm process technology.

The order would come at just the right time for Samsung, which recently announced another quarter of poor earnings: giving it its first annual profit decline since 2011.

With Samsung’s mobile division in the toilet, the company needs to focus on other areas, like securing orders for chip fabrication.

Samsung profits fall thanks to poor smartphone sales

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2014 wasn’t a great year in Samsung land. The company has just issued its earnings guidance for the year’s fourth quarter — and the news isn’t good.

With operating profit standing at 5.2 trillion won (around $4.74 billion) for the quarter, the company’s overall profit for the year will likely come in at 25 trillion won: its lowest figure in three years.

Samsung’s S9W TV is the most beautiful gimmick you’ll never use

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The Samsung S9W designed by Yves Behar. Photo: Samsung
The Samsung S9W designed by Yves Behar. Photo: Samsung

LAS VEGAS — The first full day of CES if starting to wrap up and if there’s one trend starting to emerge, it’s that there are no trends. Nowhere was this more apparent than Samsung’s keynote, where the company threw everything and the kitchen sink into its announcement of new home appliances, a vacuum, a Virtual Reality service called Milk, a cute portable SSD, and of course, one of the craziest TVs we’ve ever seen.

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Dropping ridiculous TVs has become something of a tradition for Samsung at CES, and this year is no different with the SUHD S9W TV that’s touted as ‘the most seductive TV ever made.’ It’s just too bad you’ll never get to use their beautiful gimmick.

Samsung beats Apple in smartphone satisfaction index

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Samsung beat Apple and HTC in consumer satisfaction. Photo: Killian Bell/Cult of Android
Samsung beat Apple and HTC in consumer satisfaction. Photo: Killian Bell/Cult of Android

While Samsung’s smartphone sales may be falling, those who are buying its devices couldn’t be happier with them. In a new satisfaction study, the South Korean electronics giant beat even Apple to the top spot of the smartphone category, while Nokia ranked higher than BlackBerry, LG, and even HTC.

Apple will dominate 2015’s biggest tech show without showing up

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CES Walkup. Photo: Jim Merithew/Cult of Mac
CES Walkup. Photo: Jim Merithew/Cult of Mac
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Apple won’t be at the mammoth International Consumer Electronics Show in Las Vegas next week, but once again, it’s setting the agenda from afar.

Cult_of_Mac_CES_2015While Korean electronics giants like Samsung will dominate the show floor, Apple is laying the future path for the entire tech industry.

In the coming year, the tech industry’s big battlegrounds will be your body, your home and your car. At CES, thousands of companies will showing off new and prototype products to do battle in these arenas. But Apple is the company to beat. With the upcoming Apple Watch, in addition to HealthKit, HomeKit and CarPlay, Apple is setting the agenda for the entire tech industry, and it’s not even there.

Rewind: The best TV ads of 2014

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We'll all remember Monty. GIF: Cult of Mac
We'll all remember Monty. GIF: Cult of Mac

A great TV commercial will often be remembered for a lot longer than the product it’s trying to sell, so it’s no wonder companies spend hundreds of millions every year in pursuit of that one ad that will be a huge success. Some of the best ads we’ve seen this year come from the likes of Budweiser, P&G, Save The Children, and of course, Apple — and you’ll find them in the roundup below.

TSMC will likely get golden ticket as Apple’s main A9 chip supplier

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Gene testing, coming soon to an iPhone near you. Photo: Jim Merithew/Cult of Mac
The next iPhone's processor will be made in Taiwan. Photo: Jim Merithew/Cult of Mac
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The iPhone 6 has barely been on the market for three months but the iPhone 6S rumor mill is starting to heat up with a battle brewing between Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung to become the main supplier of the next-gen A9 processors.

Last month a Digitimes rumor claimed Samsung already locked up A9 chip production, but according to the Taipei Times, TSMC will continue to be the main supplier of Apple’s processors slated to the next generation of iPhones and iPads in 2015.

Researchers at the Market Intelligence and Consulting Institute (MIC) say that while the two companies have similar capabilities, TSMC is poised to win the order thanks to it’s better yields.

Samsung’s gorgeous 360-degree speakers will fill your room with sound

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Samsung has taken a bit of a beating as of late, thanks to the decline of its mobile division, but that doesn’t stop us from noticing that these new pill-shaped speakers from being absolutely gorgeous.

Scheduled to be properly unveiled at CES 2015 in Las Vegas, the speakers are designed to project sound in a 360-degree radius, using Samsung’s proprietary “Ring Radiator” technology.

There are two speakers set to be introduced in the range: a larger model called the WA7500, which is described as a “stand type” and the lantern-style WA6500, which features a built-in battery and is more easily movable. Both speakers are wireless, utilizing Bluetooth technology.

We’ll have full details when we get a closer look at CES (along with the other gadgets on display at the much-anticipated tech show), but for now this is a great sneak peak at a line of speakers that is already filling us with envy. Check out more images after the jump:

Apple’s next-gen A9 chip may have already entered production

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Chips
Samsung has reportedly already started producing Apple's A9 system-on-chip. Fabrizio Sciami/Flickr CC
Photo: Fabrizio Sciami/Flickr CC

Speculation about who is going to build Apple’s A9 processor may be coming to a halt, as Korea’s Electronic Times reports today that not only has Samsung won the contract from Apple, but it’s also entered production.

As per the report, Samsung began fabrication on the new system-on-chip yesterday at its chipmaking facility in Austin, Texas, using a 14 nanometer process.

Microsoft declares iPhone 6 most popular device of 2014

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The iPhone 6 dominated 2014. Photo: Jim Merithew/Cult of Mac
Even Microsoft admits the iPhone 6 is king of 2014. Photo: Jim Merithew/Cult of Mac

Microsoft released its list of the top Bing searches of 2014 this week, and among tech companies, Apple appears to be this year’s big winner, again.

The iPhone 6 and iPad both ranked among the top 5 tech search words of 2014, according to BingTrends. Other top searches included Fitbit and the Xbox One, but the iPhone 6’s biggest competitor – the Samsung Galaxy S5 – didn’t even place in the top 10.

Here are the complete rankings:

Samsung reportedly grabs piece of Apple’s A9 chip pie

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Chips
Is it too early to start thinking about the iPhone 7? Not for Apple's suppliers it's not. Fabrizio Sciami/Flickr CC
Photo: 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.

This differs from the current iPhone 6 devices, where TSMC is reportedly responsible for producing the A8 chips thanks to a deal inked in 2013.

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.

Samsung could supply 80% of Apple’s future mobile chips

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Chips
Fabrizio Sciami/Flickr CC
Photo: Fabrizio Sciami/Flickr CC

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%.

Samsung’s corporate rap video is even worse than you’d expect

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Things get weird when Samsung stops copying Apple and tries to do its own thing, and as if to remind us of that salient fact, the company tapped famed Korean rapper Mad Clown, to blast out rap on its new corporate sustainability animated rap video.

The Samsung rap video highlights the company’s positive stats on diversity on work-life, but fails to mention some of the grimmer facts that were discovered in its sustainability report that was published earlier this year.

Samsung posted its bizarre rap video this morning, boasting sick statistic-laced rhymes like “Samsung, we 280,000 humans, 40 percent 112,000 women. You don’t have to worry after giving birth.” If that sick line doesn’t make you want to sign up to build the next Galaxy S6, just listen to the rest of the catchy raps in the video above.

Apple beats Samsung to be named China’s most powerful mobile brand

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People queue for the iPhone 6 and 6 Plus all across China. Photo: People's Daily/Weibo
People queue for the iPhone 6 and 6 Plus all across China. Photo: People's Daily/Weibo

It’s been a great year for Apple in China, and to top it off the China Brand Research Center just released its China Brand Power Index for the year — placing Apple in the no 1 position over long-time rival Samsung.

While Samsung Electronics took home brand value prizes in both the TV and monitor categories, Apple roundly beat it in the all-important mobile category, which Samsung has occupied for the previous two years.

Samsung and TSMC battle it out for Apple’s A9 chip orders

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Chips
Fabrizio Sciami/Flickr CC
Photo: Fabrizio Sciami/Flickr CC

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.

Q3 earnings show that Apple is just clobbering Samsung

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Photo: Martin Hajek
Photo: Martin Hajek

Samsung may ship more devices, but there’s no doubt that Apple is winning the war.

That’s the takeaway from Samsung’s latest earnings report, which stated that the Korean smartphone maker’s Q3 operating profits were just $3.8 billion, a 60 percent drop over last year.

And things are even worse in the mobile division, which dropped 73.9 percent year-over-year.

Now compare those numbers to Apple.