Samsung May Lose Apple Chip Supply Contract for 2014 iPhone Production

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Samsung may be about to lose its supply contract for the application processors used in Apple's iPhone according to reports coming from the supply chain.

Citing industry sources, DigiTimes reported that Apple is now expected to award a contract to TSMC to manufacture all the application processors (APs) used in the 2014 model of its iPhone.

Part of the speculation is also based on reports that TSMC has accelerated its chip foundry construction plans to cope with an increased demand for its chips.

However, Samsung will still manufacture AP chips for the next-generation iPhone that is expected to be announced within the next few months. There is some speculation that the new model will be just a slightly modified version of the current iPhone, with next year's model being the next major hardware breakthrough.

Samsung and Apple have been fighting each other over smartphone patents, even as the two companies remained close collaborators on manufacturing Apple's iPhone

On the web: DigiTimes

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Tags: samsung  apple iphone 

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