Samsung Chosen to Supply 80 Percent of Apple's Future A-Series Chips for iOS Devices

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Apr 12, 2001
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Apple has reportedly chosen Samsung over Taiwan Semiconductor Manufacturing Company (TSMC) as the primary supplier for its future application processors in a deal worth billions, claims The Korea Times (Via G for Games) citing sources familiar with the deal.

Starting in 2016, Samsung reportedly will supply 80 percent of Apple's supply of 14 nm application processors with TSMC supplying the remaining 20 percent. The key factor that boosted Samsung was its recent partnership with GlobalFoundries, a relationship which will enable Samsung to produce sufficient supply of processors to meet Apple's demand.
"Apple has designated Samsung as the primary supplier of its next A-series chips powering iOS devices from 2016 as the alliance with GlobalFoundries (GF) enabled Samsung to cut off capacity risk," a source familiar with the deal said.
During its recent conference call, Samsung confirmed that it is producing sample 14 nm chips for an unidentified customer with plans to mass produce the chips in 2015 and 2016. This latest Korean Times report claims Samsung will begin building the processors early next year in its South Korean plant with plans to expand production to the company's Austin, Texas facility and GlobalFoundries' New York factory in the coming year.

Article Link: Samsung Chosen to Supply 80 Percent of Apple's Future A-Series Chips for iOS Devices
 

crsh1976

macrumors 6502a
Jun 13, 2011
972
699
So many levels of irony...

Oh well, at least we know Samsung is able to produce Apple's A chips.
 

2457282

Suspended
Dec 6, 2012
3,327
3,014
Although not a shocker, I continue to be amazed that no one seems to be able to scale the way Samsung does. Therefore Apple continues to "sleep with the enemy."

I don't think we need to worry about Samsung stealing the chip design since that has not been a problem yet. However, it does provide significant income to Samsung that they will use to continue to copy Apples iPhone. Therefore, I wish there were legitimate alternatives in the SoC space.
 

zorinlynx

macrumors 603
May 31, 2007
6,170
9,110
Florida, USA
Although not a shocker, I continue to be amazed that no one seems to be able to scale the way Samsung does. Therefore Apple continues to "sleep with the enemy."

I don't think we need to worry about Samsung stealing the chip design since that has not been a problem yet. However, it does provide significant income to Samsung that they will use to continue to copy Apples iPhone. Therefore, I wish there were legitimate alternatives in the SoC space.
I'm starting to think companies are no longer really "enemies" anymore. They all just operate in a careful balance of competitive spirit and a sort of necessary cooperation in some ways.

They all use a lot of the same technology, parts from many of the same vendors (Qualcomm for radio chipsets for instance). Samsung is probably more than happy to be able to make a few dollars from some iPhones sold, and Apple is happy to have multiple suppliers for their parts so that if one company decides to "take all their toys and go home" they don't lose out.

It all works in the end, everyone makes money and we all get decent products, most of the time. :)
 

Jsameds

Suspended
Apr 22, 2008
3,525
7,987
Darth Vader: "NOOOOOOOOOOOOOOoooooooooooo!!!!"


But out of all seriousness and fanboyism aside, if it means decent Apple products I'm all for it. Better to have deals like this than inferior quality products in our pockets and on our desks.
 

69Mustang

macrumors 604
Jan 7, 2014
7,421
13,881
In between a rock and a hard place
Although not a shocker, I continue to be amazed that no one seems to be able to scale the way Samsung does. Therefore Apple continues to "sleep with the enemy."

I don't think we need to worry about Samsung stealing the chip design since that has not been a problem yet. However, it does provide significant income to Samsung that they will use to continue to copy Apples iPhone. Therefore, I wish there were legitimate alternatives in the SoC space.
I really don't see an issue at all. They are competitors and business partners. As for copying, has that been an issue since the Galaxy SII? Flagship phones from Apple and Samsung are so fundamentally different in design that copying seems to be a thing of the past.
 

aerok

macrumors 65816
Oct 29, 2011
1,491
139
Sucks for people that swore to never buy a Samsung product again.
 

jlchee

macrumors newbie
Feb 15, 2008
12
0
Ecuador
In reference to Jacques's big boy pants, those come with built in knee pads and a Velcro patch at the back side for the users comfort and convenience. Every time I visit my banker or my attorney I make sure to wear my big boy pants.
 

Firelock

macrumors member
Sep 7, 2012
85
69
Dallas, Texas
I don't really know enough about Samsung to be certain, but I suspect like most really large corporations, the different business units function as almost completely separate companies. The semi-conductor business has almost certainly bent over backwards to prove they have the necessary firewalls in place otherwise Apple would of course never have agreed to use them.
 

wigby

macrumors 68000
Jun 7, 2007
1,951
1,517
I'm starting to think companies are no longer really "enemies" anymore. They all just operate in a careful balance of competitive spirit and a sort of necessary cooperation in some ways.

They all use a lot of the same technology, parts from many of the same vendors (Qualcomm for radio chipsets for instance). Samsung is probably more than happy to be able to make a few dollars from some iPhones sold, and Apple is happy to have multiple suppliers for their parts so that if one company decides to "take all their toys and go home" they don't lose out.

It all works in the end, everyone makes money and we all get decent products, most of the time. :)
They never were enemies. For all of his vitriol toward Google, even Steve Jobs worked with them and did a lot of business with them up until his dying day. Samsung is no different. From the outside, it looks like these companies are bitter rivals and should never do business with each other but if a deal benefits both of them, why wouldn't they?
 

Rootus

macrumors 6502
Mar 22, 2008
376
24
Portland, OR
Sucks for people that swore to never buy a Samsung product again.
Anybody who says that is ignorant. Not only does Samsung make a lot more than just smartphones & tablets, they're also fundamentally a different company from Apple in that they're a manufacturer. Apple is primarily software & marketing.

Apple leans over to Samsung and whispers "Heard of GT?" <winks>
Oh dear lord. Do you have any idea how big Samsung is? Apple hasn't got the kind of leverage with Samsung that they had with a tiny little company like GT. There is most assuredly not the same kind of "you will take this deal and love it" dictation of terms. Samsung is more than big enough to say "Ha, piss off."
 
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