Apple Turns To Samsung Again For Lion's Share Of Production For Next Gen Mobile Processors

Apple isn't letting its personal feelings interfere with its business decisions, hence why Samsung will continue to supply the bulk of application processors for the company's iPhone and iPad devices. The two sides reportedly came to an agreement that will have Samsung producing 80 percent of the custom chips Apple uses in its mobile products.

Samsung rival TMSC will supply the remaining 20 percent, The Korea Times reports. That will push TMSC back into second place, effective in 2016.

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Samsung will continue to build the bulk of Apple's custom application processors.

"Apple has designated Samsung as the primary supplier of its next A-series chips powering iOS devices from 2016 as the alliance with GlobalFoundries enabled Samsung to cut off capacity risk," a source familiar with the deal said.

Though Apple would like nothing more than to severe ties with Samsung, it's chief rival in the mobile device space and a frequent target of patent infringement lawsuits, having a reliable and steady supply of chips is the company's number one priority.

As before, Apple will continue to design its own custom chips, and Samsung will fabricate them in partnership with GlobalFoundries. It's said the deal is worth billions of dollars and comes just a month after the two sides agreed to drop all patent litigation against one another outside the U.S.

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