Samsung to Make Apple A9 Chips for the Next iPhone

Samsung has won the new contract to build Apple A9 processors for the next iPhone model, stealing the role back from rival Taiwan Semiconductor Manufacturing Co. (TSMC), sources close to the matter have revealed to Bloomberg. Samsung will begin manufacture of the A9 chip at its Giheung plant in South Korea, while additional orders will be handled by Samsung partner Globalfoundries Inc.

Prior to the A8 chip, Samsung was Apple’s go-to semiconductor manufacturer, but their relationship crumbled after a series of legal disputes, at which point Apple opted for TSMC as its new chipmaker. Reclaiming the Apple processor contract will help Samsung challenge TSMC, which became the second-largest chip manufacturer during its time providing chips for Apple’s iPhones and iPads, with the semiconductor industry market worth an estimated $300 billion.

Song Myung Sup, an analyst from Seoul’s HI Investment & Securities, thinks that Samsung’s new contract might bring further contracts, saying, “If Globalfoundries quickly adopts Samsung’s most advanced technology and increases yield, it could also win orders from Qualcomm.”

Samsung, Globalfoundries, and Apple all refused to comment.