Samsung (Photo : Reuters)
Despite the ongoing products, gadgets, and market competition, Samsung Electronics will still be making all the chip sets for Apple products. This year, Samsung Electronics will remain to be the leading supplier of the next Apple iPhones having 75 percent of the chip production, Reuters reported.
The two tech giants have conducted chip set business together and will continue as the year progresses. Samsung has created the A7 64-bit processor chip for Apple and will remain as is despite having Taiwan Semiconductor Manufacturing Company (TSMC) as Apple's regular chip manufacturer.
Samsung started the chip production on Dec. 11, 2014 as the head of the company received a confirmation to a massive order from Apple in October 2014. The mass production of the new Apple chip set is intended for the latest iPhones. The Apple-Samsung chip relationship has been going on since the first iPhone was released in 2007, according to Bidness ETC.
According to Michael Liu, KGI Securities analyst, TSMC will not be making the next generation 14-nanometer processors for both Apple and Qualcomm and they will be supplanted by Samsung around the second half of 2015.
"We are not going to comment on specific customers. In 16-nanometer, TSMC will have a smaller market share than a major competitor in 2015. But we'll regain leading share in 2016, 2017 and onwards," explained TSMC Chairman Morris Chang.
Apple foresees a vast amount of demand is coming its way and will need a lot of the chips more than expected. Samsung will continue to manufacture the chips as the year proceeds.
The contract amount was not disclosed and which chip sets will be supplied by TSMC.
