Apple reportedly signs agreement with Samsung to supply 14-nm chips

By on July 15, 2013, 7:15 PM
apple, samsung, cpu, tsmc, chips, 14nm

Apple has reportedly signed an agreement with Samsung that will see the Korean tech giant supply future A-series chips for iOS devices. Sources say Samsung will be responsible for providing A9 chips using their new 14-nanometer manufacturing process which will (in theory) have double the efficiency as existing 28-nanometer chips that Samsung is sourcing to Apple.

The deal was possibly signed in May and would see Apple commit to Samsung for a period of three years which is the industry norm. The chips, which use a 3D design to reduce leakage and maintain power and reliability, will be supplied starting in 2015 and are expected to show up in Apple’s iPhone 7.

Samsung has been supplying Apple with application processors since 2007 when the first iPhone was launched. As tension between the two companies grew, however, Apple elected to diversify and take their business elsewhere. The reason for this was to not become too dependent on one supplier and as such, Apple signed a deal with Taiwan Semiconductor Manufacturing Company (TSMC) to build chips for devices expected to arrive in 2014.

It’s unclear at this time whether or not the new deal with Samsung will be in addition to the work that TSMC is doing for Apple or if Cupertino plans to back out of the TSMC deal and have Samsung make all of their chips exclusively. Once again relying solely on Samsung would seem counterproductive given the fact that they wanted to reduce reliance on Samsung in the first palce.




User Comments: 13

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2 people like this | RH00D RH00D said:

Is this what they call "frenemies"?

"Here, just let me sue you for billions one day then pay you billions in agreements the next." ._.

Guest said:

It is what they call "business."

JC713 JC713 said:

I love how Apple just noticed that Samsung is the only one that can keep up with demand.

1 person liked this | Guest said:

I guess next we invade korea for chips.

MilwaukeeMike said:

It's very possible that they never really planned to drop Samsung completely. It's common for businesses to bring in another big supplier so they don't rely on just one. If Samsung (or TSMC) were Apple's only supplier then Samsung could demand more money for future contracts because Apple would be stuck with them. But by having two suppliers Apple can force them to compete a little on price and quality.

misor misor said:

I would not be surprised if the "alleged rift" between Apple and Samsung is jut a cover to keep the artificial high price of apple products.

1 person liked this | Skidmarksdeluxe Skidmarksdeluxe said:

It's just business. Samsung needs Apple just as Apple needs Samsung in order for both to remain profitable. I wonder if Apple has approached Intel/Micron yet...

1 person liked this | EEatGDL said:

Don't know if Intel saw this coming, they were supposed to have a time advantage on development and Samsung will be using 14 nm the same year as Intel -a huge jump in fabrication process for Samsung.

misor misor said:

It's just business. Samsung needs Apple just as Apple needs Samsung in order for both to remain profitable. I wonder if Apple has approached Intel/Micron yet...

is Intel entering into "arm-like processor" business or apple considering going into x86 processor architecture?

VitalyT VitalyT said:

It's a cloak'n dagger business model, sleeping with the enemy...

Skidmarksdeluxe Skidmarksdeluxe said:

is Intel entering into "arm-like processor" business or apple considering going into x86 processor architecture?

I'm sure Intel can produce ARM type processors if approached and the price is right.

Guest said:

I don't get this relationship. This reminds me of a married couple who hate each other's guts, fight all the time, cheat on each other, lie and steal from each other, but then at the end of the day come together and are able to sleep in the same bed and have many children together. W T F!

captaincranky captaincranky, TechSpot Addict, said:

Don't ya just wish the people at Samsung would grow a pair, and tell Apple to go f*** itself?

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