Samsung expects improved profits from its Apple chip deal

Samsung is expected to start producing processors for its clients, including Apple, Qualcomm, and AMD by the end of the year using its new 14nm fabrication process.  Kim Ki-nam, President of Samsung's semiconductor business and head of System LSI business, announced in Seoul that once they start supplying these chips to Apple, their profits “will prove positively”. The Apple A8 processing chip which used in the iPhone 6 and the iPhone 6 Plus is based on 20nm technology and is currently being made by two contract makers, Samsung and Taiwan's TSMC. According to sources of ZDNet Korea, Samsung is producing around 30 percent of the total volume of A8 chips while the rest are being manufactured by TSMC.

As per the knowledge of same sources, Samsung already has a contract in place to product the next generation of Apple processors, the A9 which will be based on 14nm process. TSMC, which is the largest contract chip producer, is expected to manufacture its next generation chips using a 16nm process so Samsung has an advantage over them. Samsung claims that their 3D FinFet chips would be 35 percent more energy efficient, will have 20 percent faster processing performance, and will be 15 percent smaller when compared to current generation 20nm chips.

Even though Samsung is the global leader in producing memory chips, it faced huge losses this year due to lowered demand from Apple. Apple has been constantly decreasing its dependance of Samsung for producing chips which are used in its devices. Samsung is also facing a lot of competition in the mobile processor market from Qualcomm and MediaTek. The only brands using Exynos processors in their devices are Samsung and Meizu.

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