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Apple agrees with Samsung for supplying iPhone chips

Apple agrees with Samsung for supplying iPhone chips:

The two leading smartphone-maker giants, putting back some level of discomfort, are looking forward for a fruitful future by agreeing on the new contract.

Apple has decided to use Samsung manufactured chips in its devices. Reports confirmed that Apple and Samsung has agreed on producing the new chips deploying the 14 nano FinFET technology for Apple’s iPhone 7 which is expected to release in the second half of 2015.

Samsung has produced chips for iPhone since it was first introduced in 2007. It was still manufacturing the Apple A6 processor which powers iPhone 5. However, it was reported that Apple was terminating the agreement with Samsung from A7 production as the two companies’ rivalry in the smartphones segment and patents across the world.

The Korea Economic Daily reports that Apple has signed a contract with Samsung towards the manufacturing of future A-series chips for Apple’s iOS devices. Specifically, the agreement defines the production of A9 chips which is based on new 14-nanometer manufacturing process, and production begins sometime in 2015.

Apple had signed a three year contract with Taiwan Semiconductor Manufacturing Company (TSMC) and its partner Global UniChip to manufacture its new A-series chips built through 20nm, 16nm and 10nm process nodes. The report had stated by industry sources to inform that TSMC would commence manufacture of the Cupertino giant’s A8 processor in minimal quantities in July 2013, and increase production capacity after December.

Hope this agreement reduces rivalry among two Smartphone leaders.