“Samsung Electronics agreed with Apple to produce application processors (APs) from next year for iPhones and iPads, sources said Monday,” Kim Yoo-chul reports for The Korea Times.
“The agreement means Samsung will become a primary supplier of APs to Apple, pushing its chief Taiwanese rival TSMC back to second place,” Kim reports. “From 2016, the company will supply 80 percent of APs used in Apple devices, and TSMC the remainder.”
“AP chips function as the brain in computing devices. Apple will design its A-series APs, and Samsung will fabricate them in partnership with GlobalFoundries (GF), a semiconductor manufacturer headquartered in Santa Clara, California,” Kim reports. “‘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. The value of the deal is said to be worth ‘billions of dollars,’ according to the sources.”
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