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Apple Reportedly Signs Deal with Samsung for 14-nm A9 Chips Starting in 2015

Sunday July 14, 2013 7:24 pm PDT by Eric Slivka
apple_a6_chipThe Korea Economic Daily reports that Apple and Samsung today officially signed an agreement that will see the two companies working together on future A-series chips for Apple's iOS devices, with the deal specifically covering A9 chips based on a 14-nanometer process node starting in 2015. The claim comes just weeks after Taiwan Semiconductor Manufacturing (TSMC) confirmed a deal with Apple to begin producing A-series chips in 2014.
Samsung Electronics had supplied the AP [application processor] to Apple since 2007 but lost the contract to supply 20 nano AP A8 chips to Apple to Taiwan's TSMC last year when it was engaged in patent disputes with Apple. Samsung Electronics developed state-of-the-art 14 nano models ahead of its rival TSMC, regaining the order from Apple.
A previous report about Apple's agreement with TSMC had indicated that it was a three-year deal covering not only Apple's future A8 chip but also A9/A9X chips. The Wall Street Journal's report had indicated that Samsung would remain Apple's primary supplier through next year as TSMC began ramping up its production.

As a result, it is unclear whether today's deal will see both TSMC and Samsung producing A9 chips for Apple or if Apple has already shifted gears to return to Samsung as its primary supplier as part of its long-term roadmap.

Apple has reportedly been seeking to reduce its reliance on Samsung as a component supplier as the two companies have become fierce rivals in both the mobile marketplace and in the courtroom. The two companies have, however, continued working together in several areas, particularly where Samsung's competitors in the component market are unable to match its technology, production capacity, or pricing.

The shift to TSMC for production of the high-profile main chips for Apple's iOS devices had been viewed as breaking one of the most significant remaining ties between Apple and Samsung, but it appears that Samsung has been able to bring Apple back into the fold by leading the charge to 14-nm chips. With partnerships with both Samsung and TSMC, it appears that Apple should be well-positioned to take advantage of whichever company takes the lead in developing the latest technologies.

Late last week, it was reported that Apple had bought into a fab, perhaps with an eventual goal of producing its own chips for its mobile devices, although any such move is almost certainly years away given the need to ramp up expertise and facilities for such production.

Tag: hankyung.com
[ 126 comments ]


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dagamer34
80 months ago

Samsung is evil.


Companies are not people. Stop assigning them feelings as if they have temperaments like one.
Rating: 21 Votes
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YesILoveTech
80 months ago

Apple probably guesses 2015 is the year people realize Samsung's phones suck, and this will be their way of keeping them afloat as they sit there and watch Sammy suffer.


What in the delusional fanboy hell did I just read? LOL!!! Dude at the end of the day Apple made a business decision in their best interest and it just so happened to be with Samsung. That's it and that's that. Gosh these explanations are so entertaining.

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Apple and Samsung are successful companies that have somewhat of a symbiotic relationship. Yes they are competitors and marketing will tout their respective products as superior to their counterparts...but at the end of the day you better believe there is a level of respect between the two...fanboys/girls are just too emotionally invested to realize this.
Rating: 15 Votes
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irDigital0l
80 months ago

Samsung is evil.


So are the A4, A5, and A6 chips in your iOS devices.

THEY'RE ALL EVIL!!!!

lol
Rating: 15 Votes
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Brandon263
80 months ago
Samsung is evil.
Rating: 14 Votes
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sw1tcher
80 months ago

Apple probably guesses 2015 is the year people realize Samsung's phones suck, and this will be their way of keeping them afloat as they sit there and watch Sammy suffer.


If this story is true about Apple signing a new deal with Samsung, then I'd say Apple needs Samsung more than Samsung needs Apple.

My guess is Apple realized TSMC couldn't meet Apple's demands/needs/requirements for the A chips and realized they better have Samsung pick up the slack.
Rating: 14 Votes
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PollyK
80 months ago
HAHAHAAAA..... sorry had to laugh at this news. So many Apple enthusiasts jumped at the chance to bag Samsung when they heard of the TSMC deal. "Samsung is doomed", "Apple doesn't need Samsung", "that'll teach Samsung." Almost anything that could have been said by a fan boy was pretty much said. And now what? it's back pedal city. Never understood how people let their misguided hate get in the way of rational thinking.
Rating: 11 Votes
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Dreamer2go
80 months ago
"Keep your friends close, but your enemies closer" I guess...
Rating: 10 Votes
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tbrand7
80 months ago
Its been obvious all along!
Rating: 9 Votes
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Toltepeceno
80 months ago

Samsung is evil.


Boycott samsung, don't buy apple products.
Rating: 9 Votes
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PollyK
80 months ago

for all we know, this could have been the conversation

Samsung: OK OK OK, we'll do $2.5k per 250 chips.
Apple: Nope.
Samsung: AGH, $2k per 250.
Apple: Nah.
Samsung: FINAL OFFER, $1.7k per 250.
Apple: *YAWN*
Samsung: Fine, super serious, last offer or I'm leaving: $1.6k per 250.
Apple: $1.5k per 275.
Samsung: Deal!

My point: Samsung could have saw the deals between Apple and TSCM and lowered their prices substantially to keep a partnership with Apple.


Sorry, I only deal in fact. Not in fan boy dreamland. The fact is, Apple makes a big deal of leaving Samsung only to keep coming back. Whether it's for displays of chips. if Apple could replace Samsung, they would. Fact is, Apple needs Samsung more than Samsung needs Apple. The sooner you accept this, the sooner you can enjoy those magical Samsung components in a peaceful state of mind.
Rating: 9 Votes

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