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Samsung takes back its lost AppleĆ¢€™s main chip orders from TSMC

Published on 07 April 15
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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 companyâs semiconductor plan is located in Giheung in South Korea. Though the contract hasnât yet gone public, additional order will be manufactured by Samsungâs partner Global foundries.

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

The future of the contractâs 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 yearâs capital expenditure was $3.7 billion and this year they may raise it to $4.9 billion according to the companyâs executives in a conference on 29th January

The company is also spending $15 billion on its new chip plant which will be located outside of Seoul.
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 companyâs semiconductor plan is located in Giheung in South Korea. Though the contract hasnât yet gone public, additional order will be manufactured by Samsungâs partner Global foundries.

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

The future of the contractâs 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 yearâs capital expenditure was $3.7 billion and this year they may raise it to $4.9 billion according to the companyâs executives in a conference on 29th January

The company is also spending $15 billion on its new chip plant which will be located outside of Seoul.

This blog is listed under Gadgets , Digital Media & Games , Peripherals and Mobility Community

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