Up until last year, Samsung had been the sole manufacturer of Apple’s in-house chips used inside the iPhone and the iPad. In a bid to diversify its supply-chain this year, Apple shifted the majority of the production of its A8 chips found inside the iPhone 6 and iPhone 6 Plus to TSMC.
In a bid to become the primary producer of the A9 chip that will be used in the iPhone 7 and other iOS devices next year, Samsung has now offered quotes lower than TSMC to secure the order from Apple. To further sweeten the deal, Samsung is also ready to manufacture other flash based chips for Apple like flash memory and perform other optimisation services.
According to industry sources close to DigiTimes, Apple will finalise its primary supplier for the A9 chip by the end of this quarter.
Apple shifting to TSMC for the production of its A8 chips had an adverse effect on Samsung’s logic chip business as it profit fell sharply to $848 million in the last quarter.
Apple’s upcoming A9 chip is expected to be based on the 1X FinFET process. Its current A8 and A8X chip are based on the 20nm fabrication process.