Sources in the semiconductor industry say that Samsung will supply the A9 application processor for the iPhone 7 as well as the firm’s own upcoming Galaxy S6.
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 come from 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