THE RIVALRY BETWEEN SAMSUNG AND APPLE IS ALL WATER UNDER THE BRIDGE IT SEEMS AS SAMSUNG MAY SIGN A MULTIBILLION APPLICATION PROCESSOR CHIPS WITH ITS RIVAL APPLE–AS APPLE DOES NOTHING MORE THAN INTEGRATE EXISTING TECHNOLOGY AND REPACKAGES IT TO MAKE THE IPHONE AND IPAD WITH ITS OWN DEVELOPED SOFTWARE AND AP DEVELOPED CHIPS

Samsung Electronics agreed with Apple to produce application processors (APs) from next year for iPhones and iPads, sources said Monday.

The agreement means Samsung will become a primary supplier of APs to Apple, pushing its chief Taiwanese rival TSMC back to second place.

From 2016, the company will supply 80 percent of APs used in Apple devices, and TSMC the remainder.

Unlike conventional memory chips such as DRAMs and NANDs, APs are categorized as logic chips which give producers much higher margins.

AP chips function as the brain in computing devices. Apple will design its A-series APs, and Samsung will fabricate them in partnership with GlobalFoundries (GF), a semiconductor manufacturer headquartered in Santa Clara, Calif.

“Apple has designated Samsung as the primary supplier of its next A-series chips powering iOS devices from 2016 as the alliance with GlobalFoundries (GF) enabled Samsung to cut off capacity risk,” a source familiar with the deal said.

The value of the deal is said to be worth “billions of dollars,” according to the sources.

http://www.koreatimesus.com/samsung-strikes-potentially-multi-billion-dollar-chip-deal-with-apple/