While Samsung wouldn't be producing Qualcomm's upcoming flagship chip Snapdragon 845, it still has something to look forward to.
The Investor has come across a new report that says that Samsung has just secured a deal with Apple. As per the deal, the South Korean giant would build the 7nm A12 chips for next year's iPhone. This definitely is a good news for the company since it lost the deal for the Snapdragon 845 to TSMC. Interestingly, TSMC is the company that currently makes the 10nm A11 chip for Apple.
As we have reported a while ago, Samsung has lost the deal because it wouldn't be able to produce the 7nm processors by the time Qualcomm needs them.
On the other hand, Apple usually launches the iPhones in the month of September. So Samsung would get plenty of time to prepare for the production. The company has even bought some extreme UV lithography machines recently, which will be needed in the making of Apple's 7nm processors.
The testing phase is ongoing, which is expected to complete soon. Reportedly production of the chipsets will start as soon as Apple gives the approval.
Some of you might know that Samsung used to make the chipsets for Apple. However, it lost the deal to its rival TSMC back in 2013. It is kind of funny how TSMC now has Qualcomm, and Samsung has got Apple back.
Having said that, we can't deny that losing the Qualcomm deal is a big blow for Samsung since 40% of Samsung Foundry's sales last year came from the former.