Samsung Secures Contract To Produce Next Generation iPhone's A9 Processor

As much as Apple and Samsung don't like each other, they don't let those feelings get in the way of sound and mutually beneficial business decisions. Hence, Apple has reportedly tapped Samsung to once again produce custom ARM-based System-on-Chips (SoCs) for its next iPhone, while Taiwan Semiconductor Manufacturing Co. (TSMC) sits on the sideline.

According to Bloomberg and the people it spoke with who have "direct knowledge of the matter," Samsung will produce Apple's custom A9 processors at its Giheung fab in South Korea. GlobalFoundries, which entered into a strategic partnership with Samsung several years ago, will also fulfill a portion of Apple's A9 orders. The A9 parts will presumably be built on Samsung's 14nm manufacturing process.


This is a big deal for Samsung, which watched in envy as Apple picked TSMC to produce A8 processors for its highly popular iPhone 6 and iPhone 6 Plus smartphones. It's also a big opportunity for GlobalFoundries as it could lead to additional business from other clients who might be interested in 14nm parts, assuming no hiccups.

What about TSMC? It's business relationship with Apple will depend on how quickly it can bring about more advanced production methods and pricing that's in line with what Samsung and GlobalFoundries are able to offer. Like Samsung, TSMC is investing heavily this year into advanced production capabilities.