Samsung Wins Deal To Supply Chips To Apple Inc.

Samsung Electronics Co. Ltd. (LON:BC94) (KRX:0059935) just scored a major win that will let them design a 14-nanometer A9 chip for Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices, Inc. (NYSE:AMD), and Qualcomm, Inc. (NASDAQ:QCOM). This report comes from ZDNet.

Samsung scores big contract

The tech giant already built custom mobile chips for Apple ever since the 2007 launch. Recently, that position has been reduced. Right before the launch of the iPhone 6, Samsung made all of Apple’s low-power ARM processors at a Texas factory. However Apple tapped Taiwan Semiconductor Manufacturing Company to make the A8 CPU for the iPhone 6 and iPhone 6 Plus.

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The South Korean tech giant did claim it will still be supplying 40% of the A8 chips for iPhone 6. However this is still a significant decline considering how Samsung once did all the manufacturing. The upcoming A9 chip will reportedly be smaller with a 14-nanometer ARM CPU which is smaller than the current 20-nanometer processor.

Samsung’s latest lawsuit

In other Samsung related news, one Chinese supplier for the company filed a lawsuit against a watchdog group in New York which claimed Samsung hired underage workers. The tech giant claims the allegations are false and has evidence to back it up. The lawsuit was filed by HEG Electronics just this past Monday. HEG produces components for mobile phones for Samsung and Lenovo. The watchdog group dismissed the lawsuit as public relations action.

Late last summer, the watchdog group claimed the company hired over 10 workers under the age of 16. Samsung responded with joint investigation with HEG as well as a second probe from local authorties.

HEG added in a statement, “CLW has endangered the very existence of HEG by undermining the confidence of its business partners and employees.”

CLW’s executive director Li Quiang added, “This lawsuit is a public relations action. If they were serious, HEG and Samsung would file the lawsuit in America.”

Samsung’s evidence could provide a win in the lawsuit.

via: ZDNET