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Samsung to produce majority of chips for Apple starting next year

The rivals are set to do business once again.

Samsung-Logo-no-4

Samsung, which the world knows to be Apple’s nemesis, has long been a component provider for the company. Apple has sourced many components from the Korean giant, including but not limited to chips and display panels. It has been reported countless times that the Cupertino company wants to move its business away because it no longer wants to line Samsung’s pockets. But apparently it is set to return to Samsung next year for majority of the chip production.

Earlier this year the Taiwan Semiconductor Manufacturing Company clinched a contract with Apple which makes it the majority supplier of A8 chips to Apple. That doesn’t mean Samsung is completely out of the picture. It still manufactures around 40 percent of the chips that go inside the iPhone 6 and iPhone 6 Plus.

This new deal between Apple and Samsung will once again increase the latter’s participation in the supply chain. It is suggested that by 2016 Samsung is actually going to account for 80 percent of Apple’s entire chip allocation, with TSMC only being given 20 percent. Samsung would then be tasked with developing chips for Apple at its plants in South Korea, New York and Austin, Texas.

This report comes out of Korea, but hasn’t been backed up with an official confirmation from either Apple or Samsung, then again these companies rarely talk about deals concerning their supply chain.

Source: Korea Times

Adrian Fonseca
Adrian Fonseca keeps a close eye on all Apple news, rumors, leaks and developments. In his spare time, he likes to read books.

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