Samsung To Fabricate Majority Of A9 Chips For Apple’s Next Generation iPhone

Posted Jan 26, 2015
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Samsung will offer majority of Apple’s A9 chips, to be used in next generation iPhone, says Maeil Business (a South Korean newspaper) via Reuters. It states that, nearly 75% of the chips for Apple’s next flagship will be offered by Samsung, and the CPU’s will be fabricated at Samsung’s factory in Austin, Texas.

Samsung will Be Manufacturing Apple’s A9 Chips

The newspaper didn’t tell anything about the worth of the contract and other companies to be engaged in the fabrication of new CPU for iPhone 6S. However, rumors are abound that, Taiwan Semiconductor Manufacturing Company (TSMC) is likely to be the part of Apple’s A9 supply chain. According to Apple insider, the A8 chip found on iPhone 6 Plus and iPhone 6S board was also fabricated by TSMC. However, before iPhone 6 and iPhone 6 Plus, the production of all A series chips was the responsibility of Samsung. TSMC is included in the supply chain of A9 chips, merely over its refined fabrication of A8 chips.

Apple Inc has been fairly reticent about its next flagship and meager details are known about upcoming iPhone model, which might release later this year. However, recent media leaks suggest that, it could pack in dual lens camera unit, which will enhance camera’s low light recital. Apart from an A9 chip, Apple’s next flagship will also be outfitted by an M9 co-processor. No doubt, the combined functioning of these processors will enhance the performance of device running iOS 9.

In the last few years, Apple has tried a lot to reduce its dependence on 3RD parties for iPad and iPhone components. According to several source, the iPhone alone brings up almost 60% of company’s total revenue. Although, Apple Inc. depends on Samsung for all A-series chips, the liaison has been laden, with Apple Inc taking a veer of litigation against Samsung for suspected patent infringement.

As Samsung’s indenture of delivering A-series chips to Apple terminates in 2014, the South Korean tech giant was already adapting to trek its chip cost by 20% to its Apple’s products customers, just few weeks prior to securing an A9 chip agreement, in the midst of the height of its legal conflicts. In a nutshell, we have to wait, in order to analyze the performance difference between A8 and A9 chips. Tell us what you think in the comment section. We will keep you updated in the meantime.

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