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Samsung To Manufacture Chipsets For Apple iPhones

According to reports, Samsung bought a lightweight lithography machine to produce 7-nanometer mobile chipsets for iPhones

Photo Credit : Reuters


According to international news reports, Korean electronics giant Samsung will be again manufacturing chips for Apple’s new iPhones next year which will be presumably called A12 chip.

Samsung recently bought an extreme lightweight lithography machine which is the most advanced chip manufacturing equipment. It was reported that the equipment was purchased to produce 7-nanometer mobile chipsets for iPhones.

Samsung was a major chip-manufacturer for Apple until 2013 when Taiwan Semiconductor Manufacturing Company (TSMC) became the sole producer of processors for Apple’s iPhones.

Earlier A9 chips for iPhone 6s was fabricated by both Samsung and TSMC. In some battery tests, TSMC chipsets outperformed Samsung chips which resulted in Apple choosing TSMC as the sole manufacturer of A10 and A11 chipsets in iPhone 7 and upcoming iPhone 8 respectively.

Reports say that Samsung would also share ‘some parts’ of iPhone 8 orders which were earlier monopolized by TSMC.

According to Korean Herald’s sources, Kwon Oh-hyun, one of Samsung’s three co-CEOs who oversees chip and other parts businesses, played a key role in clinching the deal during his visit to Apple’s headquarters last month.

“The CEO could persuade Apple’s top brass taking advantage of their close ties on OLED,” said an industry source. Samsung, the world’s largest mobile OLED maker with a whopping 95 percent market share, is the sole OLED supplier for the upcoming iPhone.

All the iPhones from next year will feature OLED displays which will be supplied by Samsung; Apple has placed an order of between 70 and 92 million OLED displays for the new iPhone 8. OLED deal between Samsung and Apple paved the way for Samsung to manufacture the chipsets.

Samsung is now planning to complete its own tests with the new chip-making machines before seeking final approval from Apple for the manufacturing of processors.