Samsung takes back its lost Apple's main chip orders from TSMC

Prior to last year, Samsung Electronics Co. was the sole manufacturer of main chip used in iPhone. The contract was lost last year to Taiwan Semiconductor Manufacturing Co. (TSMC).

This year, Samsung will start its production of Apple A9 processor chips. The company’s semiconductor plan is located in Giheung in South Korea. Though the contract hasn’t yet gone public, additional order will be manufactured by Samsung’s partner Global foundries.

With the contract back into Samsung’s hands, the company will be able to rebound against TSMC. Both the companies have invested heavily into the semiconductor industry and getting Apple’s order would mean taking over 7.5% of the total chips production.

The future of the contract’s exclusivity with Samsung depends upon whether TSMC will be able to put forth more advanced technology that can offer pricing competitive enough to Samsung and Global foundries.

Samsung is also investing heavily in the semiconductor business. Last year’s capital expenditure was $3.7 billion and this year they may raise it to $4.9 billion according to the company’s executives in a conference on 29^th January