Apple is distancing itself more from Samsung by partnering with Taiwan Semiconductor Manufacturing Company (TSMC) to be the sole manufacturer of future iPhone processors. The deal cuts Samsung out of some serious revenue considering how popular Apple's smartphone is, and is already boosting TSMC's value.
Apple cuts Samsung out of A10 iPhone chip manufacturing
TSMC will be using a 10-nanometer manufacturing process, according to Electronic Times in South Korea (thanks, Reuters). The reported deal will leave Samsung in the dust starting with this fall's iPhone refresh, presumably called the iPhone 7.
Samsung currently makes upwards of 70 percent of the A9 chips Apple uses in its mobile devices. Losing that business won't ruin Samsung, but the company will notice the revenue hit and it's possible chip manufacturing won't show a profit once TSMC takes over.
The loss is big enough that Samsung has gone into a state of emergency in an effort to keep its chip manufacturing facilities running. The company is now courting Qualcomm in hopes of winning a manufacturing deal for Snapdragon 820 chipsets, according to Patently Apple.
Samsung is also working on a 7-nanometer manufacturing process as a move to win back future iPhone processor manufacturing.