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The Prodigal Client: Apple Returns to Samsung to Produce A9 Processor Chips in 2015

Samsung to Produce A9 Process Chips for Apple in 2015

Jul 15 2013, 1:02pm CDT | by

Samsung will Produce A9 processor chips
A6 Processor Chip

 

 

In the movie Sweet Home Alabama, Reese Witherspoon plays the role of a woman who was raised in rural Alabama, out in the middle of nowhere, with parents who are considered “uncultured” by 2013 standards. 

 

Her name? Melanie Smooter. She hated her last name and wanted to get rid of it. So, she leaves home and heads for the “bright lights, big city” of New York City. The result? She becomes cultured, gains a name for herself, and a clothing line that is hard to beat. In the eyes of those who work for her, she is what they aspire to be. 

 

Melanie even changes her name to something that seems much more “sophisticated” than Smooter and attempts to inaugurate a complete transformation of her life. No one in New York City knows anything about her. However, she left a husband behind in order to experience life on the level she wants. In the process, she meets this rich guy Andrew and falls in love. He asks her to marry him, and she says yes. 

 

In the midst of this happy time, however, Andrew’s mother (a role played by Murphy Brown’s own Candice Bergen) is something of a tyrant, who does not think that Melanie is right for her son. She decides to hire a private investigator to discover “the dirt” on Melanie. 

 

While engaged to her “prince,” Andrew, Melanie starts to rekindle her passion for her husband, with whom she had separated years ago. While she left Alabama to go live her own life, her estranged husband remained in Alabama, committed to his love for her and the good memories in their childhood. With the right situations, Melanie’s heart brings her back to her husband, and she then brings him to NYC to be a part of her new life. 

 

In short, what she thought she was missing was there, all along. 

 

This seems to be the perfect sentence to describe Apple, the prodigal partner of its new 2015 contract agreement with Samsung Electronics.

 

Apple struck a contract with TSMC two weeks ago to manufacture its A8 processor chips for the 2014 year, and many said then that Apple would continue to find other partners to make its chips (apart from Samsung). The company has been committed to freeing itself from the Korean manufacturer, who has become an unforgettable brand in the eyes of smartphone and tablet consumers. 

 

Samsung’s products have become the best that the Android world has to offer (apart from Google), and Samsung remains Apple’s fiercest competitor in the current market – thus, motivating Apple to find ways to eliminate Samsung’s profits. Apple has done something similar to Google: first, Apple removed Google from YouTube in iOS 6, then Google Maps, and next, Google as iOS’s default search engine

 

In a surprising turn of events, however, Apple has returned to Samsung for its A9 processor chips for the 2015 year. While TSMC has the approval of Apple, it was Samsung’s leading processor chip technology that convinced Apple to return to Samsung. According to MacRumors, 

 

The shift to TSMC for production of the high-profile main chips for Apple’s iOS devices had been viewed as breaking one of the most significant remaining ties between Apple and Samsung, but it appears that Samsung has been able to bring Apple back into the fold by leading the charge to 14-nm (nanometer) chips.( http://www.macrumors.com/2013/07/14/apple-reportedly-signs-deal-with-samsung-for-14-nm-a9-chips-starting-in-2015/)

 

At this point, it is unclear how Samsung will fit into Apple’s plan, seeing that TSMC had agreed to a three-year contract with A8 devices. If TSMC and Apple reached a deal two weeks ago for 2014, and the contract lasts three years, then TSMC will work for Apple until the end of 2016. 

 

If Apple will return to Samsung in 2015, this may mean that the company may rely on TSMC alone for one year, followed by the use of two manufacturers (both TSMC and Samsung) in 2015, simultaneously. 

 

Apple’s strategy to employ two chip makers at once may be a direct result of Apple’s disappointment with long-time partner Foxconn, who has been unable to produce the iPhone and iPad in Apple’s expected time frame. Perhaps Apple’s action here is to avoid “putting all the eggs in the same basket” and making the same mistake twice. 

 

 
 

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<a href="/latest_stories/all/all/22" rel="author">Deidre Richardson</a>
Deidre Richardson is a long-time Apple fan and reports passionate about the latest Apple news and rumors.

 

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