Analyst believes Samsung will lose Apple’s business for iPhone 7 processors because of ‘Chipgate’

Apple opted for both Samsung and TSMC to manufacture its new A9 processor that you’ll find in the company’s latest mobile devices, Samsung’s A9 chip is made on a 14nm process while TSMC’s chip is made on a 16nm process. This has led to a new controversy called “Chipgate,” with multiple reports claiming that the TSMC chip provides 20% better battery life than its Samsung counterpart. Apple tried to downplay the issue by saying that its tests show that the actual battery life of the iPhone 6s and iPhone 6s Plus even when variable component differences are taken into account, vary within just 2-3% of each other.

It’s unclear what percentage of A9 chips both manufacturers are supplying Apple, some believe that Samsung has received majority of the orders while others say TSMC is the major supplier for the A9. A JP Morgan Securities analyst believes that this controversy has cost Samsung Apple’s business for the iPhone 7 processor. TSMC is now expected to receive all orders for the A10 processor since Samsung’s A9 chip is underperforming. Even if this is true one can’t expect Samsung to sit idly by while TSMC takes away all of Apple’s business, but we must not forget that TSMC did receive all orders for Apple’s A8 chip in 2014, so it won’t be surprising if Apple goes down this road again for the A10. There’s a long way to go before A10-powered products enter mass production, a lot can happen between now and then.


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