Roger Fingas
Though effectively shut out of Apple processor manufacturing for years, Samsung is allegedly making a hard push to win back some chip orders from TSMC in 2019.
To achieve that goal Samsung is in "full throttle" development of InFO (integrated fan-out) packaging technology, and also claims to be ahead of TSMC in production using 7-nanometer extreme ultraviolet lithography, or EUV, according to DigiTimes sources. TSMC's latest InFO technology has reportedly cleared verification from Apple, allowing it to snap up "A12" processor orders for this year's iPhones.
Samsung has even dropped its order quotes for EUV by 20 percent, hoping to attract business from a variety of companies, but supposedly with "little response." This is thought to be because of quality and yield risks with 7-nanometer EUV, something that TSMC is still struggling with. TSMC may not fully integrate EUV into production until it moves to 5-nanometer chips.
Even Samsung could potentially focus its initial EUV use on chips for its own Galaxy S10 phones, despite the appeal of a client as large as Apple.
TSMC has boasted that its InFO method reduces the thickness of chip packaging while improving processor speed and power dissipation. EUV is an advanced method of printing the actual circuitry, but complex for a variety of reasons, such as requiring a vacuum due to the fact that all matter absorbs EUV radiation.
Samsung was once the exclusive manufacturer of Apple's A-series processors for iPhones and iPads. As the two companies increased competition and legal battles, though, Apple began migrating to TSMC, which now enjoys a monopoly over supply. That could be a reason for Apple to bring Samsung back in, since it could force chip prices down.
Samsung is still enjoying business from Apple however as the exclusive supplier of display panels for the iPhone X. The company remains the only OLED manufacturer with capacity to meet Apple demand, and is expected to hold onto that role with 2018 iPhones, though the mix could diversify in 2019.
Charles Martin
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Malcolm Owen
39 Comments
Apple should not subsidize Samsung’s fabs, make them pay full price if they want to fab them
The cost curve for developing and deploying new semiconductor manufacturing processes is exploding. From what I've read about EUV, it is incredibly difficult to implement and the only reason it's being considered is that all alternatives are even more difficult.
I would not be at all surprised if one of the big chipmakers finds itself incapable of keeping up in this race. And the chipmaker to fall behind may very well be Intel, inconceivable as that might have been 5 years ago. By missing out on mobile, Intel has shut itself out of the revenue stream that can fund these increasingly expensive process nodes.
Samsung is dishonest. They don't deserve to get Apple's business.
I agree. I know Apple has to be cautious about supplier monopolies and unit pricing, but I don’t want any more of my iPhone purchase going to Samsung. Cheering for TSMC, good luck guys!