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Samsung Reportedly Take Over TSMC to Supply Next iPhone’s A9 Chip

By Vincent Wang
Published: Apr 07,2015

TAIPEI, Taiwan — Samsung will replace Taiwan Semiconductor Manufacturing Company (TSMC) in manufacturing of Apple’s future A9 chip, expected to be launched alongside new iPhone models later this year. Both companies withheld comment on it, allegedly.

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According to Bloomberg, citing people familiar with the matter, claims that the deal between Apple and Samsung for processors has now been officially confirmed, though not yet publicly disclosed. The news corroborates earlier rumors which had pegged Samsung as going back into business with Apple.

Allegedly, Samsung had traditionally been Apple’s exclusive chip supplier, until last year when the contract went to TSMC. This led to a loss of almost one billion dollars for Samsung’s chip plants last year. However, the company has recently invested huge sums of money in building new, more advanced manufacturing facilities in South Korea and other parts of Asia, and if this report is accurate the move may prove highly successful. Samsung is expected to make up for last year’s loss with this new Apple deal.

Meanwhile, both companies have declined to comment on the subject matter, though rumors regarding Apple’s upcoming iPhone models are already spreading like wildfire.

Moreover, TSMC is going to hold an quarterly investor conference on April 16, it’s no doubt that this topic will be a hot issue then. Experts considered that slower production is the drawback of TSMC, while Samsung did poorly in the defect-free rate comparing with TSMC. It is said that TSMC’s chips work better, but Samsung’s chips save more power consumption.

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