Samsung to Produce Chip for New iPhone Next Year

Apple And Samsung
Samsung Electronics will again produce chips for new iPhone next year. An important deal came after the Korean technology giant lost iPhone orders to Taiwanese rival TSMC in 2013.
According to news reports on July 18, Samsung recently purchased extreme ultra violet lithography machines, the most advanced chip manufacturing equipment, to produce a special seven nanometer mobile processor for the iPhone.

Various sources say Kwon Oh-hyun, one of three co-CEOs of Samsung who oversees chip and other spare parts business, played a key role in reaching the deal during his visit to Apple headquarters last month.

"The CEO is able to persuade Apple officials by taking advantage of their close ties to OLEDs," industry sources said. Samsung, the world's largest mobile OLED maker with a 95 percent market share, is the sole OLED supplier for the upcoming iPhone.
Samsung is the main chip manufacturer for Apple until 2013, when TSMC then became the only chip maker for the iPhone. Samsung managed to win a supply deal for next year's iPhone by adopting a more energy-efficient seven nanometer technology than its rivals.

The report said Samsung will share some spare parts of iPhone orders next year that have been monopolized by TSMC.

TSMC, the world's number one chip-making company, took up 50.6 percent of the market share in the global chip-casting sector with revenues of US $ 28.8 million in 2016, followed by the US Global Foundry with 9.6 percent, and Taiwan's UMC With 8.1 percent, according to market research firm IHS. Samsung had a 8.1 percent market share in the same year.
Samsung plans to complete its own tests for a new chip-making machine soon and get final approval from Apple for iPhone chip production.