Samsung-made chips will power future iPhones

Apple's iPhones to be released from next year onwards will feature chips developed by Samsung, as reported by The Korea Times.

Having developed the flash and working memory in the iPhone 4, Samsung is no stranger to the deal. However, Apple had a majority of the  A7 and the latest A8 chips developed by Taiwan Semiconductor Manufacturing (TSMC) following a flurry of legal disputes between the two tech giants across the globe.

However, Samsung and their partners still produce about 40 per cent of the chips currently being used in the iPhone 6.

The new deal will increase Samsung's share in the chipset orders to 80 per cent and Taiwan Semiconductor Manufacturing will manufacture the remaining 20 per cent of chips.

Said to be worth 'millions of dollars,' the deal will be jointly shouldered by Samsung and its American partner GlobalFoundries. Apple is said to be more trusting towards Samsung for meeting its chipset requirements globally.

Samsung introduced the home-grown Exynos 7420 for the Galaxy S6 and the S6 Edge flagships citing overheating issues with Qualcomm's Snapdragon chipsets which power a majority of Android phones today. The move was seen as Samsung's ambition to dominate the chipset industry in the coming years to stabilize the balance sheets that were on a downward slide following falling smartphone sales in the last few years.

The report stated that Samsung will manufacture Apple's A9 chips from its Giheung facility in South Korea. However, there have been no official statements in this regard from both tech giants till date.

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