According to a report published by Digitimes, a newspaper of Taipei, Global Foundries and Samsung has signed a deal to produce A series chips that were being used in the Apple products name iPhone and iPad since its introduction in 2007. Not only Digitimes, which has been keeping a close check on the development of Asia technology sector, even Times Union, another popular journal has mentioned about the same deal in its latest publication. However, neither of the party that has signed the deal mentioned the date from which they are going to commence their production process or even confirmed about this piece of news.
This piece of information has triggered widespread discussion amongst the analyst and they have concluded that probably such a tie-up between Samsung and Global Foundries became a necessity in the face of rising demand for chips from Apple. Currently the chip of Apple is produced in Austin, Texas in the Samsung’s S2 fab. However, to keep up with the increasing demand for chips, which is the heart of the mobile phones, another factory will be opened at Malta. The reporters at Digitimes have assumed that the chip required for iPhone 7 which will get released in 2015 is probably solely manufactured in the Fab 8 at Malta.
Most of the hardware parts that are used in iPhones, iPads and other products are not produced by Apple itself. On the contrary, Apple outsource most of the parts required and thereafter assemble it to sell it in the market. Since the demand for Apple products in the global market is very high, all companies would be enthusiastic to become a part of the supply chain of brand Apple. The latest iPhone i.e. iPhone 5 uses a A7 chip. However, Samsung and Global Foundries have signed a deal to manufacture A9 chips i.e. a chip that is two generation advanced. Digitimes reporters have commented that A9 chips will be primarily manufactured by Global Foundries at Fab 8 at Malta. But the Samsung has patent the product and therefore collect royalties from Global Foundries.
This comment and assumption made by the reporters of Digitimes is accurate as in Times Union as well mention of such a deal has been mentioned. It is said that a group of scientist fork Samsung will visit Fab 8 at Malta and explain them the procedure for making A9 chips. Based on this knowledge they will produce A9 chips and Global Foundries will turn into the second source for manufacturing chips. The Fab 8 unit is still not ready and we expect it to get it ready by next year so that the production of A9 chip on full scale can be started.