Samsung To Meet Apple’s Demands of Processors, Report Claims

A report released by the Korea Times revealed that Apple has selected Samsung to meet its application processor demand. It is agreed that Samsung will manufacture processors for Apple’s iPhone and iPad. Starting from 2016, Samsung will cover the 80% demand of processors for Apple, making it the leading supplier for the company. The remaining 20% will be supplied by Taiwan Semiconductor Manufacturing Company (TSMC).

Apple will design its A-series processor while TSMC and Samsung will work on the manufacturing process. Samsung had been able to secure such a large deal from Apple because of its partnership with GlobalFoundries. The relationship between the two parties will enable Samsung to meet the processor demand of Apple within time.

Samsung will manufacture the 14 nm application processors while TSMC will manufacture the 16 nm application processors. While Samsung here has the upper hand with better manufacturing capability because of its efficiency and technical capability, the end product however should not be different in quality.

Aside from the deal with Apple, it is expected that Samsung will get more deals from other big names like Sony, Qualcomm and NVIDIA. Being partners with GlobalFoundries had played a major role in favor of Samsung. An official from the industry stated that Samsung was not the choice of many corporate clients to provide chips but with the partnership, it would allow the company to secure more such orders. Samsung’s logic chip manufacturing sector is expected to bring a large profit to the company as the deal is worth billions.