It seems like they cannot live without each other! Apple and Samsung’s turbulent relationship has taken another turn with the latest news reported by Korea Economic Daily. The daily reports that the archenemies Apple and Samsung have signed a new chip fabrication deal for 2015.
However, Apple recently signed a three-year chip fabrication deal with TMSC, which is due to begin in 2014. This led people to believe that Apple would not be using Samsung’s services.
But, Korea Economic Daily reported that “Samsung is transitioning to the more sophisticated 14nm fabrication process faster than TMSC” which is more beneficial for Apple’s plans for its future A9 chip designs.
Since 2007, Samsung had the contract to supply the application processor [AP] to Apple but due to their legal disputes, lost the contract to TSMC last year when they were chosen to supply 20 nano AP A8 chips. However, the fact that Samsung had developed the state-of-the-art 14 nano models ahead of TSMC, enabled them to regain the order from Apple.
Apple and Samsung are still embroiled in legal wrangling internationally and they are both accusing each other of patent infringement, with diverse results. Due to their disputes, Apple has been trying to change parts suppliers, moving away from Samsung wherever viable. This impacted negatively on Samsung’s bottom line as Samsung is made up of various business entities in technology. Electronic component supplying is a big part of their business, in addition to them being a manufacturer of electronic devices.
Apple seems determined to spread its chip business wherever there is a technological and / or competitive advantage. This being said, it was a huge triumph for Samsung to have regained a slice of Apple’s massive components orders. But Samsung lost an enormous portion of Apple’s business since their legal battles.