Apple, Samsung to Team Up on New iPhone Chip

Technology

Published: July 15, 2013 10:40 am

Last Updated: April 27, 2020 4:22 pm

Source: Apple

The disagreements between smartphone leaders Apple Inc. (NASDAQ: AAPL) and Samsung Electronics apparently do not extend to the chip fabrication part of the business. A report in The Korean Economic Daily this morning claims that Samsung will supply Apple with the A9 mobile processors that are scheduled for use in the iPhone 7.

Samsung has supplied chips to Apple since 2007, but last year it lost a contract to supply the A8 version of the processor (for the iPhone 6) to Taiwanese rival Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM). The Taiwanese firm could not match Samsung’s ability to get a 14-nanometer production line up and running in time to launch the iPhone in the second half of 2015.

The A9 chip is a 14-nanometer device, compared with the 20-nanometer A8. TSMC had gotten its foot in the door at Apple with the current A6 chip, and Apple had bypassed Samsung for the A7 version, scheduled to ship in the first half of next year.

Shares of TSMC are down about 0.7%, early this morning, at $18.32 in a 52-week range of $12.14 to $20.30.

Apple’s shares are up about 1.1%, at $430.75 in a 52-week range of $385.10 to $705.07.

For Apple to be beholden to one of its bitterest rivals must be a galling experience for the Cupertino company.

ALERT: Take This Retirement Quiz Now (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.