Samsung to produce A9 chips for next generation iPhones and iPads

Bloomberg reports Samsung has been chosen by Apple to make chips for the next iPhone, taking the business from Taiwan Semiconductor.

The chipset will be used by the Cupertino company on its upcoming iPhone 6s and iPhone 6s Plus.

The report claims that Samsung will be making the A9 chips at its Giheung plant in South Korea. While Samsung will be manufacturing the majority of the chipsets, the rest of the orders will go to Samsung’s partner Globalfoundries Inc.

Apple reportedly went with Samsung over TSMC this time around, because of the former’s advanced 14nm fabrication process.

The Galaxy smartphones in Samsung Mobile’s division have been struggling after the iPhone 6 has taken markets like the United States and China by storm. Samsung’s new deal could help boost the balance sheet of the entire Samsung conglomerate.

Korea Times reported in November that Samsung would replace TSMC, but not until 2016. If Bloomberg’s report turns to be true, Samsung is getting Apple’s business earlier than believed.

Researcher Gartner recently reported Apple spent $25.8 billion on chips last year, accounting for 7.6 percent of industry purchases – making it a pretty big win for Samsung.

What do you think ?



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