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Samsung and Apple Reportedly Back in Deal

By Anupika Khare on July 15, 2013 6:27 AM EDT 0

Apple and Samsung Electronics
Samsung and Apple Reportedly Back in a Deal (Photo: Reuters)

Samsung Electronics signed a deal with Apple to supply the next generation Application Processor which is predicted to be produced in 2015. The Application Processor is considered to be the brain of iPhones.

Rumour has it that the Korean Company will be using its 14 nanometer processor to produce Apple-designed A9 system on a chip. Apple’s upcoming gadget iPhone 7 will be powered by this chip, as reported by The Korea Economic Daily.

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Samsung provided Apple with Application processors since 2007 but due to the patent dispute between the two companies, the Galaxy maker lost the order.

This seems to be contradicting last month’s report by Wall Street Journal which said that Apple had signed a deal with Taiwan Semiconductor Manufacturing Company (TSMC), the world famous foundry company for chip making requirements. But as predicted, Apple will always keep Samsung as its primary source.

Rumour has it that Apple has made an agreement with TSMC for its upcoming iPhone 6 Application processors.

Now, it seems Samsung is back on track since it has a contract with 14nm FinFET or multi-gate chip architecture. It is not yet sure why Apple returned to Samsung because even TSMC was applying a 20nm FinFET process for the next generation A7 chips. It is predicted that the price and the capability of the product could have influenced the decision.

It is also possible that Apple has signed contracts with both the companies for a much broader supply chain just as it deals with Foxconn and Pegatron, reports Appleinsider.

Both the tech giants, Apple and Samsung have been at logger heads over patents. They are also biggest rivals in the smartphone market.

In one of the patent disputes, Apple was given an award of $1.05 billion compensation from Samsung after it was found out that the Korean Company violated Apple’s patents.

Along with this case, there are numerous other cases lined up for appeals in regulatory courts.

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