Samsung Electronics Co. will manufacture the main chip in Apple Inc.’s next iPhone model, regaining a customer previously lost to Taiwan Semiconductor Manufacturing Co., people with direct knowledge of the matter said. Samsung will start making Apple A9 processor chips at its Giheung plant in South Korea, the people said, asking not to be identified because the contract hasn’t been discussed publicly. Additional orders will go to Samsung’s partner Globalfoundries Inc., according to another person familiar with the arrangement.
Apple chose TSMC as the producer of its A8 processor for the iPhone 6 and iPhone 6 Plus. The missed business contributed to Samsung semiconductor posting a 1 trillion ($914 million) loss last year. However, if Samsung does end up producing the A9 chip it could realize a 1 trillion won gain this year, says Song Myung Sup, a Seoul-based analyst at HI Investment & Securities Co.
This report corroborates one from February which said Apple was going with Samsung because its managed to shrink the size of the transistors on its chips to 14nm while TSMC is still at 20nm.
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