Samsung Strikes A Billion Dollar Chip Manufacturing Deal With Apple | TechTree.com

Samsung Strikes A Billion Dollar Chip Manufacturing Deal With Apple

The Korean company sure has its ways of stepping out of losses.

 

So Samsung hit an all time low with mobile sales this year. What does it do about? Well, as of today it has struck deal with Apple (long standing enemy in the mobile space) and will begin manufacturing Apple’s application processors (APs) starting 2016.

Currently it seems to be Taiwan Semiconductor Manufacturing Company, Limited (TSMC) who is working with Apple to deliver chipsets for its new range of iPhones and iPads. Basically manufacturing will shift from the Taiwanese over to the Koreans. But reports say that Samsung wont be hogging on the manufacturing process completely. TSMC will still have its share of manufacturing the APs (albeit a much smaller one) and will be handling about 20 percent of the production, to make things precise.

One thing to keep in mind is that Samsung will not be in control of Apple chips with this new deal. The Cupertino tech giant will still design its own chipsets, while Samsung will only be handling the manufacturing bit.

The deals as insiders say is worth billions of dollars and while this may be a good sign for Samsung who has recently suffered losses in its mobile division, the deal may have not exactly been a profitable one. This is more so because Samsung is not exactly in a position to demand as of today. So this indeed a good deal for Samsung at the right time.

All of this news comes soon after both tech giants dropped their long-standing lawsuits that was the outcome of a rather expensive patent war.

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TAGS: Hardware, Apple, Samsung

 
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