Apple stopped offering Samsung manufacturing contracts for its A-series processors after it faced power efficiency problems with the A9 chipset for the iPhone 6s. The US-based consumer electronics giant then started working exclusively with TSMC for the A10 and A11 processing chipsets for iPhones and iPads. Now, it is being reported that Apple is going back to Samsung for its A12 processors that could be used in next year’s devices.
According to a report from The Investor, Samsung has won back Apple’s confidence with its upcoming 7nm FinFET technology. The South Korean electronics brand might manufacture A12 chipset for Apple’s iPhones that are expected to be unveiled next year. The deal was reportedly finalised when Kwon Oh-hyun, Samsung’s VP for the LSI chip and memory division, visited Apple’s headquarters last month to meet the company’s higher level officials.
All the iPhones next year are expected to feature OLED displays (supplied by Samsung), so Samsung convinced the officials that Apple could save more money if both chipsets and displays are made by the same firm. Samsung has reportedly ordered extreme ultraviolet lithography machines that will solely be used to manufacture 7nm A12 chipsets for next year’s iPhones and iPads. So, Apple won’t face any supply shortage issues.
The South Korean firm already leapfrogged Apple last quarter in terms of profit, thanks to strong performances in chipset, display, memory, and smartphone segments. If this deal turns out to be true, Samsung will make a lot of money next year. It is also being reported that Qualcomm may move to TSMC for its next-generation, 7nm Snapdragon chipsets. However, nothing has been confirmed officially. Samsung also supplies OLED panels for MacBooks and Apple Watches.