LONDON: Samsung is set to become the main supplier of application processors for Apple’s (NASDAQ:AAPL) iPhone7, replacing Taiwan’s TMSC
Last week claimed Samsung was replacing Qualcomm’s Snapdragon chip inside the Galaxy S5 for the Exynos which is made in-house.
As Samsung grows its semiconductor business, I expect it to seek more market share in DRAM and NAND, hurting Micron.
Micron remains a hold.
Sources in the semiconductor industry claim Samsung (OTC:SSNLF) is set to become the main supplier of application processors for Apple’s (NASDAQ:AAPL) iPhone7, replacing Taiwan’s TMSC (NYSE:TSM).
Samsung was the company behind the A7 that powered the iPhone 5S, although it was ditched in favor of TSMC for the iPhone 6 and 6 Plus. Suspicions were that Apple’s war with Samsung in smartphones on the consumer side is what caused Apple to drop Samsung as its supplier.
Samsung Becoming More Of A Chip Manufacturer
The news comes almost a week after reports that Samsung will replace Qualcomm’s (NASDAQ:QCOM) Snapdragon application processor in its Galaxy S smartphone with Exynos from its in-house semiconductor division; Samsung currently uses Exynos in its Galaxy Note 4.
Samsung’s perch as leader in global smartphone share is in jeopardy as its share declined from 32% in Q3 2013 to 24% in Q3 2014. To make up for lost smartphone sales, Samsung is putting more resources into its semiconductor operations, which represent about 18% of net sales and 24% of operating profit. The company is also planning a new $15 billion chip factory to maintain its dominance in semiconductors.
