Samsung hasn’t had a very good time these past couple of years, but that may very well change this year. For starters, the company’s upcoming flagship smartphone is looking to be its most successful yet, not to mention the fact that it’s using its own Exynos chips to power the Galaxy S6 rather than Qualcomm’s Snapdragon chips means Samsung will make even more money. On top of all of this, it looks like Apple has chosen Samsung to manufacture its next-generation chips for future iPhones.
Samsung Electronics Co. will manufacture the main chip in Apple Inc.’s next iPhone model, regaining a customer previously lost to Taiwan Semiconductor Manufacturing Co., people with direct knowledge of the matter said. Samsung will start making Apple A9 processor chips at its Giheung plant in South Korea, the people said, asking not to be identified because the contract hasn’t been discussed publicly. Additional orders will go to Samsung’s partner Globalfoundries Inc., according to another person familiar with the arrangement. Winning this order from Apple will help the world’s second-largest chipmaker rebound against TSMC, which last year ended Samsung’s monopoly over contracts to make iPhone and iPad chips. Both manufacturers have boosted capital expenditures to gain business from Apple and Qualcomm Inc. in the more than $300 billion semiconductor industry. The Apple order may lead to additional business, said Song Myung Sup, a Seoul-based analyst at HI Investment & Securities Co. “If Globalfoundries quickly adopts Samsung’s most advanced technology and increases yield, it could also win orders from Qualcomm.”