Apple is requesting price cuts from its A9 chip suppliers Samsung Electronics and TSMC, which already have their 14/16nm FinFET process capacity ready for the chip that will be featured in new iPhone models slated for launch in the second half of 2015, according to industry sources.
Samsung is said to have agreed to the price cuts and will even provide almost-free backend services for the A9 chips, say sources. The company is looking to capture a majority of A9 orders.
TSMC is inclined to refuse a price cut which might affect the number of A9 chip orders it receives. Orders from other customers for 16nm chips are too small for their expanded capacity and so TSMC may ramp up 16nm production at a slower rate. The company had originally planned to output 30,000 wafers in August but that number may now be reduced to less than 20,000 if Apple's orders are cutback.
Apple is expected to unveil its new A9 chip with the iPhone 6s on September 9th. Please follow iClarified on Twitter, Facebook, Google+, or RSS for updates.