AppleInsider Staff
Samsung has won a huge percentage of orders for the production of Apple's next-generation "A9" system-on-a-chip, variations of which are expected to power this year's iOS device lineup, according to a new report.
Citing industry sources, South Korean publication Maeil Business Newspaper reported on Sunday that Samsung's Austin, Texas fab is responsible for a 75 percent slice of orders for Apple's upcoming SoC, presumably dubbed "A9" if the company's A-series naming convention is followed.
Apple is looking to use Samsung's advanced 14-nanometer FinFET fabrication process, sources said, mirroring a report from October that claimed the South Korean tech giant won only 40 percent of A9 orders.
Prior to the iPhone 6 and 6 Plus, Samsung was responsible for fabricating all A-series silicon, but that position changed when Apple tapped Taiwan Semiconductor Manufacturing Co. to handle a portion of A8 production. As demand for iPhones and iPads increases, Apple has slowly diversified its supply chain to cope with unexpected slowdowns like low yield rates on cutting edge technology.
Although final distribution numbers have not been revealed, TSMC is definitely part of Apple's SoC supply chain. Shortly after the latest iPhones hit store shelves in September, a teardown and chip analysis revealed an A8 processor built on TSMC's 20nm CMOS process.
The real winner of Apple's lucrative silicon contract for 2015 remains unclear, however, as reports vary depending on the source. For example, industry observers said last month that TSMC will use a new 16nm FinFET process to handle a majority of A9 manufacturing, disagreeing with a November report that claimed Samsung has the upper hand.
Charles Martin
Malcolm Owen
William Gallagher
Christine McKee
Wesley Hilliard
24 Comments
It's too bad that Apple don't have their own ability to mass produce microchips.
Translation: Samsung is about to report abysmal numbers. This s baloney. Every time the WS shysters release stories like this, you know there is an ulterior motive.i will spell out several scenarios. 1. Disastrous numbers at Samsung. Samsung will be coy at reporting the numbers for their mobile division. They will stress that the manufacturing business will more than make up for the losses due to the apple 'win'. They will not report any inventory write downs. 2. Disastrous numbers at Samsung. They will be a little upfront on the numbers for mobile business, but still stress that the manufacturing business will more than make up for the losses due to the apple 'win'. They will not report any inventory write downs. 3. Disastrous numbers at Samsung. They will come clean and fess up, includie inventory write downs. But they will stress the 'Soc win' will more than makeup for this losses. If you believe that these shysters truly have inside info, why then did they not predict that TSMC had won all orders for the A8? This is pure creative writing.
I've actually have been hearing that Samsungs semiconductor division is doing well even without huge orders from Apple. Also Apple still needs plenty of non A8 chips so it isn't like there is zero Apple production at Samsung. In any event I really doubt this reporter has inside information. Given that A9 should be very interesting as this should produce a very low power processor or a very high performance one in the same power range.
[quote name="ascii" url="/t/184500/samsung-reportedly-nabs-75-of-apples-next-gen-a9-soc-orders#post_2666445"]It's too bad that Apple don't have their own ability to mass produce microchips.[/quote] Why? Even IBM sold off their chip business. Practically gave it away in fact. I see comments like this all the time and it really makes no sense. It is like a car manufacture needing a custom bearing, they don't build it themsleves they contract it out to a bearing manufacture. It is all about specialization and being able to follow technology trends. Here we are talking about the 14 nm node but who's to say which manufacture will have a handle on a 7 nm node or can incorporate post silicon technology into their process.
With having this much revue and capital. Apple should make an investment for mass producing chips and Macs in US. Not a campus but a factory is needed for Apple and US. What is the point, and how can you compete when you are making your chips to Samsung!