SAMSUNG ELECTRONICS has fended off competition from TSMC to supply the main chip for the next iPhone.
Sources in the semiconductor industry say that Samsung will supply the A9 application processor for the iPhone 7 following news the firm will also supply it's own chip in the upcoming Galaxy S6 smartphone.
While designed by Apple, the iPhone 6's A8 chip was supplied by Taiwan's TSMC. However, according to sources, this will all change with the iPhone 7 and 75 percent of the A9 chips will be made by Samsung Electronics.
News emerged on Wednesday via "people with direct knowledge of the matter" that Samsung is to ditch Qualcomm and use its own microprocessors in the next version of the Galaxy smartphone.
Samsung will not, therefore, use the Snapdragon 810 and will instead supply the processor from its own Electronics arm.
If the rumour is true, the decision will be damaging for Qualcomm, which has made chips for most of Samsung's best-selling phones. The firm's shares fell on the news.
It also suggests that Samsung is trying to become more self-reliant and make use of its growing processor division. The firm recently spent $15bn on a new factory outside Seoul.
LG made a similar move last year, entering the chip market for the first time with a smartphone processor called Nuclun.
The chip made its debut in the G3 Screen, a smartphone developed specifically for the Korean market.
The Nuclun features an eight-core architecture and LTE-A Cat 6 network capability "for high performance and low energy consumption", according to LG. µ
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