It looks like a prestigious fight for winning Apple's business here. There have been several rumours about who has got the official contract to build the next iPhone chip, known as the A9 processor. Until last month, it was Taiwan Semiconductor Manufacturing Company (TSMC) chosen as the primary developer of A9 chip for next iPhone but a new report from Bloomberg suggests it is Samsung that will manufacture the main iPhone 6S/6C chip.
According to Bloomberg, people with direct knowledge of the matter asserted that Samsung will start producing the Apple A9 chip at its Giheung plant but the timeline remains under wraps. The sources went on to add that any additional orders will be fulfilled by Globalfoundries, also a Samsung partner in making chips.
Samsung and Globalfoundries alliance makes a strong one against its primary rival TSMC. The intense competition between the two rivals has been going on for the past few years, trying to mass-produce chips with most-advanced technology. However, Samsung has impressed with its 14 nanometer processor technology featured in its Galaxy S6 and S6 Edge in the Exynos chip. Clearly, the new technology has convinced Apple to assign Samsung with the next major deal for producing A9 processor.
Chips with transistors measuring 14 nanometers are much powerful than 16 nanometers as the lower number shows more advanced technology, compact design and more power.
Samsung had lost the chip-making contract to TSMC last year due to legal disputes. At the time, TSMC produced the 20nm processors for the iPhone 6 and iPhone 6 Plus.
The development is a victory for Samsung as it not only brings more business and revenues but also makes it a first choice for companies like Apple and Qualcomm, which outsources the self-designed chips for manufacturing.
"TSMC would lose some orders to Samsung next year because of the lag, but we hope to recoup some of the lost businesses in 2016," TSMC's founder and chairman Morris Chang said during an interview last October, WSJ reports.