It looks like the Korean firm, Samsung Electronics has knocked down its main competitor, TSMC in supplying the main chip for the latest iPhone on the pipeline of Apple.
According to the semi-conductor industry sources report, Samsung would be supplying A9 application processor that is essential for the next iPhone of Apple. This report has emerged soon after the news which stated that Samsung would be supplying chip for its latest Galaxy S6 hand set under its own production.
Earlier, TSMC of Taiwan supplied the main chip of iPhone 6, the latest creation of Apple. However, sources reveal that all this is changed now with the iPhone 7 as Samsung will now offer about 75% of these A9 chips for the device.
The news sources that surfaced this Wednesday through the experts who have best knowledge about the matter said that Samsung would now bid goodbye to Qualcomm and would employ the microprocessors under its production in the next Smartphones of Galaxy version. This also indicates that Samsung Electronics would not be employing its Snapdragon 810 processor and would supply the ones that are manufactured under its Electronics wing.
If the rumors are to be believed then this decision of Samsung would affect Qualcomm severely as it has remained as a trusted chip maker for the top selling mobile phones of the Korean giant. This change would also reflect in the shares’ value of the firm, which can be a drastic blow to it.
The news sources also reveal that the Korean based firm, Samsung is becoming self dependant as it will now make use of its processor manufacturing division. It should be noted that Samsung spend nearly $15 billion recently to construct a brand new factory located near Seoul.
You will also remember that LG also made one such move in 2014 and made its foray in to the market as the chip maker of its own Smartphones. It began its production of Nuclun, the Smartphone chip last year. This chip was used in the screen of LG G3, which made its debut last year. The G3 smartphone was specifically designed to cater to its customers in Korean markets.
The Nuclun chip is bestowed with architecture of 8 core along with network capability of LTE A Cat 6 network. This move by LG was to offer smartphones with an ability to consume less amount of energy and high power packed performance.