Samsung has reportedly won the bid to produce the next Apple chip that will be found in next generation iPhones. Apple’s A9 chip is said to be getting produced by Samsung Electronics Co., who will take over for Taiwan Semiconductor Manufacturing Co. who broke Samsung’s run as the only maker of chips for Apple iPhones and iPads. The move is one that isn’t officially yet, but at the same time, doesn’t come as a surprise to anyone who has been close to the production details surrounding Apple’s next iPhone.
Samsung’s first batch of A9 chips that will be produced by the company will be built in the company’s Giheung plant in South Korea. Globalfoundries Inc. is likely going to receive some of the orders to build additional A9 chips for Apple in partnership with Samsung. Many have pointed out that the successful production of these chips in partnership with Samsung will actually give the company more credit moving forward – and could lead to future contracts with Qualcomm.
That being said, the agreement – whether it’s official or not – is something of a continued oddity in the Apple-Samsung relationship. While no one has really questioned it too greatly, it has always rung odd to some that Samsung does work with Apple to this degree. Given the fact that they are producing chips for a company who is ultimately beating them with actual smartphone sales.
The financials of the deal are unknown, but it could be assumed at this point that the deal is very lucrative for both companies. Samsung will now though continue their growth and dominance in the chip making space. The big loser out of a deal between Apple and Samsung to produce those A9 chips would be Taiwan Semiconductor Manufacturing Co., who was the company that had taken the contract away last year – from Samsung. Now though, this shapes up an interesting battle that will likely take place between the two companies moving forward.