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Published on : Feb 09, 2015

In 2014 Apple loosened its grip on Samsung for its chip manufacturing arrangement. Following this it will co-produce its A8 chipsets for iPad and iPhone with Taiwan Semiconductor Manufacturing Co. (TSMC), despite uncertainty of delivery of goods from the new supplier. 

With this Apple will have to join hands with its much-disliked rival, Samsung, for manufacturing its A9 chips. This chip will power the upcoming iPhones with its 14 nanometer technology that essentially allows higher processing power in a smaller space, while using much lesser power as compared to TSMC’s 20-nanometer process. Both the companies haven’t yet  comment on the chip deal.

Previously too Apple has collaborated with TSMC and Samsung to manufacture the A8 processor. However, TSMC got about 70% of the business, while Samsung got the rest. Going forth Samsung wants to ensure that it has a substantial stock of application processors for the upcoming iPhones.

In October 2014, Kim Ki-nam, president of Samsung semiconductor unit and head of the System LSI business stated the collaboration with Apple for production of A9 chip would help the Korean company to make some good profits. He further added that the profits would start improving once the supply to Apple starts.

Around the same time Samsung also announced its intent to invest US$15 billion to build a chip manufacturing facility plant in South Korea. This amount is far more than what it has invested in the last five years. That much-anticipated facility is likely to start operations by 2017. In addition to this, Samsung has also been in talks with Global Foundries to get its 14-nanometer process for an update.