Apple has poured water on Samsung’s hopes of getting the multi-billion-dollar contract of producing the next generation iPhone Processor, the A10. Instead Apple has chosen the rival Taiwan semiconductor manufacturing company (TSMC) as its sole supplier for its superior manufacturing techniques.
The race was between Samsung which adopted the next generation 14 nm manufacturing process and TSMC that employs 10nm manufacturing techniques. Even intel had hoped to get the contact but finally the world’s largest contract chip maker (TSMC) won the deal.
The current generation iPhone uses the A9 processor that had been manufactured by both TSMC and Samsung. The next generation A10 processor is believed to be used in the iPhone 7 as well as the iPad air 4 or an equivalent device. the A10 microprocessor that will be built using the 10 nm process is said to have an integrated fan out design that will make the chip lighter and smaller than Samsung’s offering. The process is also reportedly more cost effective than Samsung’s chip.
Samsung and apple have been fighting a bitter court battle for years but outside the court room, Samsung is one of the most valued partner for apple supplying displays, processors, RAM and memory modules. Apple is also one of the few companies that bring significant revenue to the Korean giant.
This is a big blow for Samsung. It mobile unit’s growth had been stalled by the stagnation in the smartphone industry and the profits are declines as fast as they grew. Other divisions such as the display and semi-conductor units offer rare hope of bring in the much needed revenue.
But all’s not lost for Samsung’s semi conducting division. Qualcomm has stepped in and offered Samsung the chance to manufacture the snapdragon 820 processor that will be used in millions of smartphones around the world. though not in numbers of the iPhone 7, but still it’s a big business for Samsung.
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