An agreement about chip manufacturing has been achieved by Samsung and Apple. From 2016 onwards, Samsung will become the main supplier of application processors for Apple with this deal which worth billions of dollars.

80% of the application processors required by Apple will be manufactured by the Korean company after this deal. The remaining 20% production will be made by TSMC, a Taiwan-based company. Most of the chip manufacturing work for Apple is handled by TSMC at that time.

Samsung Mobiles

After the agreement that both Apple and Samsung withdraws from all their lawsuits against each other outside USA, this contract arrived. Without any surprise, Apple will continue its processor designing. GlobalFoundaries, the California-based semiconductor manufacturer, is the company which will help Samsung to manufacture these 14nm chips.

In comparison to flash memory, application processors are much more profitable to manufacture while flash is another Samsung clip required by Apple. The smartphone operations of Samsung were declining in profits and this new deal will help them to recover from that loss.