Samsung Reportedly Eager To Produce Chips For Apple’s 2019 iPhones

Samsung appears to be eager to once again produce chips for Apple’s iPhones. The South Korean giant is reportedly planning to win back some chip orders from Taiwan Semiconductor Manufacturing Company (TSMC) next year.

Samsung used to be a chip manufacturer for Apple alongside TSMC. In 2015, the Cupertino giant sourced its A9 chips for the iPhone 6s and iPhone 6s Plus from both Samsung and TSMC. Many users at the time complained that TSMC’s technology offered slightly better battery life.

Aside from the complaints, Samsung and Apple’s competition and legal battles intensified and caused the latter to rely solely in TSMC for the chips of its iPhones from 2016 to 2017. This year, Apple is once again tapping TSMC for the processors of its 2018 lineup of iPhones.

TSMC has already started production on its 7nm process and this Monday, Digitimes sources learned that the Taiwanese firm’s latest InFO (integrated fan-out) technology has already received verification from Apple. This means TSMC is on track when it comes to producing the A12 chips for the new iPhones, including the iPhone X successor that’s believed to be named “iPhone 11.”

For its part, Samsung is also in “full throttle” development of its InFO packaging technology. The South Korean tech giant also claims that its 7nm extreme ultraviolet (EUV) lithography is ahead of TSMC in terms of production. Samsung has also reportedly dropped its order quotes for EUV by 20 percent to attract businesses from other companies.

However, there is allegedly “little response” to Samsung’s technology because companies are worried about its quality and the yield risks with 7nm EUV. To be fair, TSMC is also struggling with EUV and it might not integrate the technology until it moves forward with 5nm chips, according to AppleInsider.

At TSMC’s technology symposium in Taiwan last week, CEO C.C. Wei disclosed that the company is scheduled to move its new 5nm node technology to mass production by the end of 2019 or early 2020. Wei also shared that they are currently thinking of investing $25 billion into the technology, as per MacRumors.

It’s not clear yet if Samsung could win back some chip orders from TSMC next year. Even if Samsung fails to attract large clients like Apple, it could still benefit from its own technologies. It’s very likely for the company to focus its initial EUV use on chips for its upcoming Galaxy S10 flagship and other high-end phones.