Samsung Rumored to Return to iPhone Chip Production in 2018

Discussion in ' News Discussion' started by MacRumors, Jul 18, 2017.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Samsung Electronics will return to producing chips for Apple in next year's iPhone lineup, according to a new report today by The Korea Herald. Before, Taiwan Semiconductor Manufacturing Company held the sole supplier responsibility of providing Apple's A10 chip in the iPhone 7, as well as the A11 chip in the upcoming iPhone 8, but now today's report references a "crucial deal" made between Samsung Electronics co-CEO Kwon Oh-hyun and Apple during a visit to Cupertino last month.

    According to the report, Samsung managed to close the deal because of the company's decision to purchase equipment solely intended for 7-nanometer chip fabrication for iPhone devices. This move, as well as using Samsung's "close ties on OLED," convinced Apple to reintroduce the supplier into the iPhone chip supply chain. Although details remain vague, The Korea Herald's sources said that Samsung would "share some parts" of the 2018 iPhone orders that have been previously monopolized by TSMC.

    In 2015, Apple dual-sourced the A9 chip from both TSMC and Samsung for the iPhone 6s and iPhone 6s Plus, leading to some blowback from consumers when battery tests were performed and saw the TSMC chips outperform those made by Samsung. To avoid that issue again, and thanks to TSMC's aggressive moves to adopt smaller and more energy efficient manufacturing processes, Apple chose the company as the sole supplier of the A10 and A11 chips.

    Now, Samsung is said to be preparing tests for its own chip processing machines, and next plans to "seek final approval from Apple for the chip production" for what will presumably be called the A12 chip. As the sole OLED supplier for the 2017 iPhone, Samsung Display's deal with Apple has placed the manufacturer with providing between 70 and 92 million OLED displays for the upcoming iPhone 8. Apple is predicted to shift to OLED-only iPhone production as soon as 2018 or 2019.

    Article Link: Samsung Rumored to Return to iPhone Chip Production in 2018
  2. recoil80 macrumors 68020

    Jul 16, 2014
    Oh dear, we're going to have another chip gate next year.
    Actually I don't care, but I'm sure this forum and a lot of other sites will be full of complaints
  3. Glideslope macrumors 603


    Dec 7, 2007
    A quiet place in NY.
    Any rumors who the 7nm fab they invested in is? I know Global Foundries skipped the 10nm node, and has been working on 7nm intensely (installing new extreme ultra violet lithography tools.) Perhaps it's simply their Austin Fab, or none of the above? :apple:
  4. JayJohnPaul macrumors regular


    Aug 13, 2014
    Dawnbreak City
    Welp, here we go again with the chipgate fiasco.

    TSMC ftw!
  5. Bacillus Suspended


    Jun 25, 2009
    Well happy hiking.
    Let the best company in the world supply the best camera, screens, headphone jacks, lightning connectors and whatever if it can run iOS.
    And Eddy Cue will take care of the server side
  6. Sunny1990 Suspended


    Feb 13, 2015
    As long as my iPhone is running like it should, I will care less which Manufacturer chip it have.
  7. rizzo41999 macrumors 6502


    May 27, 2009
    Sounds like it's mutually beneficial for the two companies to cooperate on this front
  8. tipoo macrumors 6502

    Jan 5, 2017
    So hopefully this means Glofo (who shares fab parity with Samsung) won't be so far behind on fabs anymore. It was really hurting AMDs efficiency with their wafer agreement with Glofo.
  9. WatchFromAfar Suspended


    Jan 26, 2017
    I don't get the hatred for Samsung that Apple fanboys have. Apple has two suppliers for their critical items. Flash memory: Toshiba and Samsung, Screens LG & Samsung: Processor TSMC or Samsung. Get this, your iPhone could be rockin' a Samsung screen, a Samsung processor and running off Samsung memory. Sounds like a Samsung phone to me....
  10. bobob macrumors 68030


    Jan 11, 2008
    Samsung Rumored to Return Come Crawling Back on it's Hands and Knees to iPhone Chip Production in 2018
  11. samcraig macrumors P6

    Jun 22, 2009
  12. WatchFromAfar Suspended


    Jan 26, 2017
    Why would they be crawling back?

    Samsung makes chips Apple needs

    Apple doesn't make chips

    Who got the most to loose here?
  13. Xgm541 macrumors 65816

    May 3, 2011
    No, the components are developed by Apple. Samsung just has the tools to be able to create them in the quantity apple requires.

    Also, diversification of component suppliers is beneficial to apple, but not so much to the consumer.
  14. WatchFromAfar, Jul 18, 2017
    Last edited: Jul 18, 2017

    WatchFromAfar Suspended


    Jan 26, 2017
    Well played, genially laughed!!
    --- Post Merged, Jul 18, 2017 ---
    What components? Are these physical components? Because Apple produces sweet fa. Apple has the reference design for the A-series processors, but there made by other people (companies) And by the way the A series processors was based on a design from a little known company from the UK called Acorn.
  15. bobob macrumors 68030


    Jan 11, 2008

    An order for 200 million chips/year renders a huge profit. Apple could have chosen to to continue buying them from TSMC, especially considering TSMC's chips are superior to Samsung's and given the fact that Samsung stole trade secrets from TSMC.
  16. vertical smile macrumors 68040

    vertical smile

    Sep 23, 2014
    I am not sure there is that much hate for Samsung. During the last Chip-gate, at first there were many, many comments on this forum of people stating they wanted Samsung over TSMC. This was before it was discovered that TSMC had slightly better performance over the Samsung chip.

    But, it isn't designed by Samsung.
  17. JeffyTheQuik macrumors 68020


    Aug 27, 2014
    Charleston, SC and Everett, WA

    You mean that, at the corporate level, they really don't care about our squabbles about "who is best"?
  18. StevieD100 macrumors 6502a


    Jan 18, 2014
    Living Dangerously in Retirement
    At one place I worked, we had a big problem with Samsung 1TB SATA Disks. 30+ of them failed inside 3 months. Took us ages to get resolved. No one would admit 1) there was a problem or 2) Who's fault it was . The company resolved not to buy anything from Samsung again mainly because of the almost total lack of customer support.
  19. SoulCloud, Jul 18, 2017
    Last edited: Jul 18, 2017

    SoulCloud macrumors member

    Apr 8, 2016
    Actually, I care about it. Two different manufacturers for an SOC, especially if they have different manufacturing techniques is something to watch out closely. Apple may deny significance of last year's chipgate, but in a device where a battery is the most crucial component, even one hour more makes a huge difference. At least to me. Why wouldn't I get the advertised product or range? Since Apple is insanely obsessed with thinness, that one hour disadvantage means I have to carry external battery after six months or have to buy Mophie Juice Pack Plus. I did those with 6s and ain't doing again!
  20. Jakewilk macrumors regular

    Jul 21, 2014
    7 nm?? The future is here. Not too long ago they were struggling to get below 16 nm and I began to worry that CPU mass production technology advancements were slowing to a halt, but I guess not!
  21. WatchFromAfar Suspended


    Jan 26, 2017
    OK I'll take you at face value that that happened. But so what? Doesn't change what I said about your next iPhone having a Samsung screen, Samsung processor and Samsung flash memory.
  22. DaveOP macrumors 65816

    May 29, 2011
    Portland, OR
    That's fine, but the soul of the phone is in the design and software. I don't think many care who makes the silicon.
  23. vertical smile, Jul 18, 2017
    Last edited by a moderator: Jul 18, 2017

    vertical smile macrumors 68040

    vertical smile

    Sep 23, 2014
    I am just pointing out what is important.

    Exotic and luxury car companies use parts from non-exotic/luxury car part manufacturers all the time.

    For example, Lotus uses Toyota parts on a few models, including motors like the one in the Toyota Camry. Would you say "sounds like a Toyota car to me"? I guess you could, but I wouldn't.
  24. I7guy macrumors Core


    Nov 30, 2013
    Gotta be in it to win it
    It's not a Samsung processor, it's an Apple processor outsourced manufacturing to Samsung. If that's your definition of a Samsung processor, we'll ok, it's your opinion.

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