Samsung to manufacture A12 chipset for Apple iPhones

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Of note, the report says that the 2017 iPhone SE will be cheaper than the 2016 version, not that Apple plans keep the original iPhone SE on the market at a $100 discount, as it does with flagship iPhones when new models are released.

The Korea Herald wrote, "According to news reports on July 18, Samsung recently purchased extreme ultra violet lithography machines, the most advanced chip manufacturing equipment, to produce seven-nanometer mobile processors exclusively for iPhone".

This is a big win for Samsung, considering it lost the deal for the Snapdragon 845 to TSMC whom now 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.

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The promise to buy 7nm chip making equipment and OLED screen ties was reportedly enough to get Apple to bring Samsung back into the iPhone supply chain. As per the deal, the South Korean giant would build the 7nm A12 chips for next year's iPhone. Interestingly, TSMC is the company that now makes the 10nm A11 chip for Apple.

The testing phase is ongoing, which is expected to complete soon. Production will then begin after Apple's approval. However, it lost the deal to its rival TSMC back in 2013.

The Qualcomm deal is a loss considering 40% of Samsung Foundry's sales past year was from the American company. This speculation is most probably based on the fact that the Samsung's co-chief executive and in-charge of chip manufacturing division Kwon Oh-hyun visited the Apple headquarters in California last month.

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