Samsung Scores Chip Deal To Supply Custom A9 Processors For Apple's Next iPhone

Apple and Samsung will probably never be friends, and truth be told, the former doesn't even want to be business partners with the latter. Nevertheless, Apple isn't going to let its contempt for Samsung get in the way of a good business decision, and so it will again rely on the South Korean electronics giant to supply custom chips for its next iPhone, according to multiple reports.

This is an ongoing arrangement between the two, though with each new generation of iPhone, there's always talk that Apple is trying to sever ties with Samsung. To an extent, it finally happened with the iPhone 6 -- Apple welcomed Taiwan Semiconductor Manufacturing Co. (TSMC) to the fold and awarded the company the bulk of its orders for the iPhone 6's custom A8 SoCs.

Apple iPhone 6 Plus

For the next iPhone, the majority of manufacturing for custom A9 chips will swing back to Samsung. Citing "people with knowledge of the situation," Recode says Apple is drawn to Samsung's recent advancements in fabrication technology, and specifically its move to a 14-nanometer manufacturing process.

Samsung poured $21.4 billion into its operations over the last year. That money went towards ramping up capacity in its semiconductor and display businesses, and the company will make additional investments in 2015. Most importantly, however, is that Samsung partnered with GlobalFounderies to enable 14nm production at its plant in Saratoga Springs, New York.

The move to 14nm combined with Samsung's ability to meet demand trumps Apple's contempt for a company it has taken to court on numerous occasions. These two are bitter rivals in the mobile space, both because they compete in same category and also due to accusations of patent infringement.

Via:  Recode
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