Samsung out, TSMC to be the sole manufacturer of iPhone 7 processors

Samsung out, TSMC to be the sole manufacturer of iPhone 7 processors
This isn't the first time Samsung has been bumped from the manufacturing roster for Apple's iPhone processors, but the company apparently just can't keep up with TSMC's manufacturing process so Samsung is out for this year's work. Apple has reportedly given TSMC the full contract for manufacturing the next gen iPhone 7 processor, expected to be called the A10 chip.

Word has it that what put TSMC over the top was its capabilities with 10-nanometer manufacturing technology, so it seems reasonable that would play a role in the next iPhone SoC. A 10-nanometer chip would make it smaller and more power efficient which would mean Apple would be able to make the iPhone thinner without it affecting battery life. Of course, most users would prefer that the iPhone stay the same thickness (or get thicker) if it would mean even better battery life, but Apple never wants to listen to customers when it means not making a thinner and lighter iPhone. 

No other news about the iPhone 7 or the A10 is known right now and it may be a while before we hear anything else too solid. The next iPhone isn't expected to be announced until September, so we'll have to survive on rumors until then. 

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45 Comments

5. medicci37

Posts: 1361; Member since: Nov 19, 2011

Yes I thought the article explained that

10. martinjhm271

Posts: 45; Member since: Aug 16, 2015

i can't wait.

11. Tizo101

Posts: 515; Member since: Jun 05, 2015

I call BS... 10 nm really?

15. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

I don't see 10nm being ready in time, as cool as it would be. If they somehow managed to shove their 10nm development cycle 6-12 months to the left, it's possible, but that would be a Herculean effort.

27. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

10nm will come in the 7S...just wait and see.

87. cheetah2k

Posts: 2146; Member since: Jan 16, 2011

TSMC couldnt make 14um work reliably. Anyhow, apple owners love cheap 5h!t parts in their premium price consumer goods :D

14. Macready

Posts: 1793; Member since: Dec 08, 2014

Chances of Apple moving from 14nm lpp to 10nm lpp in just one year:.. close to zero. Chances of TSMC having enough 10nm yields before august to supply all iPhone 7 chips: close to zero. Chances of Apple betting on a single supply source for the main chip for the one device that supplies 68% of their income:close to zero. So many times we saw similar posts last year : Samsung out. No, TSMC out. Etc. Wrong every time.

17. oozz009

Posts: 520; Member since: Jun 22, 2015

Regardless of whether Apple chooses Samsung or TSCM, I'm sure the results will turn out to be pretty similar in the end. That was the story with the A9 chip, except from the 2-3% of battery life of different that there was between the two, the Overal results were largely the same.

18. skyline88

Posts: 696; Member since: Jul 15, 2013

glad to hear that, doomsday for Crapppple coming soon.

19. AlikMalix unregistered

I don't know about this. First the little gain with tsmc over Samsung is negligible, and if you ask me, samsungs quality and experience is a tad better than tsmc. This could be due to Apple isn't expecting as much sales of next iPhone (based on predictions) and Apple doesn't have to tap both manufacturers in order to fill demand anymore. And Samsung already caved into lower costs for Apple. I'd go with Samsung if I was Apple. Will just have to see - they been rumor-ing this nearly every year - and it never panned out. My best guess of that happens it's only due to lower demand for iPhone.

20. hanabi

Posts: 177; Member since: Oct 08, 2015

Yayyy so the new iphone will be made up of all Chinese components. Hope this lowers price

26. Bernoulli

Posts: 4358; Member since: Sep 01, 2012

It's been like this for a while.... where did you think Samsung made their components? Don't tell me South Korea.

43. Cicero

Posts: 1101; Member since: Jan 22, 2014

Vietnam?

48. keithtae

Posts: 564; Member since: Mar 25, 2015

India and vietnam

54. catze86

Posts: 731; Member since: Dec 07, 2015

My Samsung Wave made in Korea

44. kanagadeepan

Posts: 1190; Member since: Jan 24, 2012

Lowering of price means STILL MUCH MUCH MORE profit for apple, but NOT so for customers..

23. Good-Is-Better

Posts: 104; Member since: Nov 12, 2015

What ever. I don't intend buying any icrap with their ridiculous prices.

33. HonestRealist

Posts: 196; Member since: Jan 25, 2016

If this is true, Samsung's financial results this year will be even worse than last year lol

49. Good-Is-Better

Posts: 104; Member since: Nov 12, 2015

Is that what you think? Samsung has SD820 to supplier alone. And more manufacturers are turning on Samsung for Amoled and lot others.

58. HonestRealist

Posts: 196; Member since: Jan 25, 2016

SD820 will end up in flagships. Android flagships, simply don't compare to the iPhone in terms of pure sales volumes. Android has an ENORMOUS user base, something like 80% of which is low and midrange devices. Samsung is used to having Apple there to keep their numbers up. The loss of it will make an impact. And the SD820 can't fill that gap.

68. j2001m

Posts: 3060; Member since: Apr 28, 2014

It can as the sd820 is going in all Samsung hi end phones I. The USA, Samsung did not make all the A9 and the deal they did was crap, Samsung also getting the sd820 at cost

37. ibend

Posts: 6747; Member since: Sep 30, 2014

10nm? lol, thats pure BS.. they pick TSMC because its alot cheaper.. TSMC already lost SD820 contract, so they lower their price as low as possible to get all A10 contract too keep their company busy

40. HonestRealist

Posts: 196; Member since: Jan 25, 2016

Who cares what their reasoning is. At the end of the day, the bottom line is what counts. And the bottom line is that if Samsung loses the contract, their semiconductor division is going to have a rather s**tty year.

56. catze86

Posts: 731; Member since: Dec 07, 2015

Realy?

59. HonestRealist

Posts: 196; Member since: Jan 25, 2016

Maybe, maybe not, but that's what I'm betting on. Time will tell :) Oh the excitement lol :'D

42. Arch_Fiend

Posts: 3935; Member since: Oct 03, 2015

Sammy will get some of the orders just wait and see.

45. alligator

Posts: 93; Member since: Jan 09, 2016

Quantity vs Quality. Apple tries to replace the biggest producer of chips and kill one of the best and profitable businesses of Samsung. Not an easy task taking in mind that they are the biggest producer. Risky move as this would generate tons of problems in the iPhones if the TSMC chips are not on the same quality level (iPhone owners always expect to have the best phone).

47. HonestRealist

Posts: 196; Member since: Jan 25, 2016

If I'm not mistaken, TSMC chips beat out the Samsung made chips last year (Personally I don't give a s**t who manufactures the chip lol)

79. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung just replaced Apple with Qualcomm. Qualcomm chips are placed in far more phones than Apple produces in a full year. With the SnapDragon 800-805, more than 700,000 phones/tablets used this platform. What's that, 2 years worth of chips. How many phones did Apple sell in 3 years? Maybe 600M? Samsung doesn't need Apple, but like any company you hate to lose a customer. But Samsung can easily replace Apple money.

83. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

Their profits are also much lower per chip.

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