Samsung inks deal to resume stamping Apple A-series processors from 2015, South Korean report claims

“Samsung Electronics will supply mobile application processor (AP) to Apple Inc. from 2015,” The Korea Economic Daily reports. “The mobile AP is a brain of Apple’s iPhone. Samsung Electronics will supply 14 nano A9 chips that will be used for Apple’s iPhone 7.”

“Samsung Electronics had supplied the AP to Apple since 2007 but lost the contract to supply 20 nano AP A8 chips to Apple to Taiwan’s TSMC last year when it was engaged in patent disputes with Apple… Apple also decided to procure iPhone 6 APs from TSMC, the world’s No. 1 foundry company,” The Korea Economic Daily reports. “Samsung Electronics developed state-of-the-art 14 nano models ahead of its rival TSMC, regaining the order from Apple.”

The Korea Economic Daily reports, “According to industry sources on July 14, Samsung Electronics signed an agreement with Apple to supply the next-generation AP that it will produce in 2015. The AP that will be produced using 14 nano FinFET technology is mounted on Apple’s iPhone 7 to be released in the second half of 2015.”

Read more in the full article here.

MacDailyNews Take: Possibilities, remote and otherwise:

• A Samsung settlement with Apple is near; or
• This is an Apple-sourced leak designed to move along TMSC or other negotiations; or
• The recent reports of Apple buying/exploring investment into chip fabs were Apple-sourced to help to seal this deal with Samsung at favorable terms for Apple; or
• This report is incorrect because it strongly conflicts with multiple recent reports stating otherwise.

Related articles:
RUMOR: Apple buys Taiwan fab to stamp its own chips – July 13, 2013
Apple exploring U.S.-based chipmaking deal with Globalfoundries – July 13, 2013
Apple to buy chips from TSMC as it attempts to extricate itself from dependency on Samsung – July 1, 2013
TSMC wins three-year deal to supply Apple with A8, A9, and A9X chips, say sources – June 24, 2013

29 Comments

      1. MacFreek, I hear you…
        Seriously – “14 nano models ahead of its rival TSMC” , yet when TSMC can provide Apple with the same, lets hope Apple will ramp down the orders from Samsung.

      2. When and (or) if they don’t have to “cut off their nose to spite their face. ”

        If samsung can fab a superior chip for them, you think Apple should use someone else , and make their product less than it could have been, just to punish samsung for copying the iPhone (and iPad)?

        Apple will move when they can source equal or above parts from another fab.

          1. Could you tell me which design has been stolen (or even is simply inspired) by Apple on any recent Samsung Model? This is not a rhetorical or aggressive question. I really would like to know.

            As far as I understood it’s even the opposit that’s happening with Apples’ announcements in June.

            1. Thank you for your answer, but I asked about recent models…

              This pic is about 2011 if I’m right. It’s not very recent…

              There’s also something that really disturbes me with it. It’s the photoshoping to make the phones more similar… It’s clear that Samsung’s first models were copied… No question about that. But why in this case do something as stupid as tampering the comparative pictures?

              http://www.slashgear.com/apple-caught-resizing-samsung-kit-again-in-patent-suit-19172992/

              The second pic comparing the Dev Hardware with the released hardware is simple nonsense. If you’ve worked in industry you would know that in this kind of early developping stage you use any hardware that’s handy to test the concept and the basics of the system. Once this is gone you go to the release process where the look and all the bells and whistles are added.

              You could be interested in this (also outside this discussion):
              http://arstechnica.com/apple/2013/03/exclusive-super-early-iphone-prototype-had-5×7-screen-serial-port/

              I don’t think we can say this looks like a released iPhone (even the first models)

            2. How do “recent” Samsung models differ from 2011 models? What does the term “recent” mean to you? This was merely a simplified example of Samsung’s copying of Apple. I really can’t believe you are so clueless as to not recognize the overt copying of design and function by Samsung. I could point out a bunch of specifics, but I really have more to do with my life than spending hours creating lists for you, so ;et me give you one more example – “rubber banding”. There are hundreds of other similar items.

            3. ANSWER TO ZEKE

              How do recent model differ?? This time it’s me who can’t believe you’re so clueless. You have it perfectly explained here:

              http://www.androidpolice.com/2012/05/04/the-samsung-galaxy-s-iii-the-first-smartphone-designed-entirely-by-lawyers/

              Once again… Actually it’s much more Apple copying other good ideas than original R&D. But alas….

              I think your (lack of) answer was the best possible answer 🙂
              Don’t worry… I won’t take more of your time

        1. Hum… No.

          You can turn it around as much as you want but Samsung makes the best chips… TSMC “could be” the one making the “cheap” chips.

          It has nothing to do with the fact to like/approve Samsung… It’s just fact

  1. Or…. It just means that Apple expects to need sooooo many chips that it literally will need every foundry around making as many as possible, and then some. Even if it means sleeping with the devil. Can you say Tipping point?

    1. My suspicion is that Samsung’s stock price has dropped quite a bit in the last few days on bad sales metrics so this rumor is released to stay that drop and reverse the trend. It probably is not true.

  2. Another possibility – Samsung is spreading these rumors because they don’t want there investors to think that after 2014 Samsung will be losing almost $10 billion revenue, and bring the share price further down.

  3. It’s interesting how far in advance the details of the architecture inside the iPhone is planned. It takes a long time to ramp up the new chips to efficient and affordable production I guess. Not many companies have this ability so Samsung may secure its place. I hope apple is putting big efforts in getting other fab companies up to its massive demand.

  4. I want apple to sever all ties with that clone company as much as the next guy, but only when they can do it and not hurt sales because of supply issues. Heck they have those now, just think what would happen if they dumped Samsung totally! It will happen, when apple feels its time.

    1. “Keep your friends close but your enemies closer.”

      Perhaps Apple is leading Samsung astray with a design that is two years away (and which Apple has no intention of using)?

  5. Other than wanting to get even with Samsung for cloning its products, Apple’s main reason for severing its ties with Samsung is to prevent its chip-making division from leaking/sharing Apple’s product plans with Samsung’s mobile phone and tablet engineers.

    Because Apple has already broadened its product line by adding the iPad Mini and seems likely to broaden it further over the next 1-2 years with additional iPhones and an iWatch, it is increasingly more difficult for Samsung to interpret Apple’s plans merely by knowing about its processor orders. 

    Thus, this order doesn’t strike me as a strategic error comparable to what occurred in earlier years.

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