J
Jeff Causey
Guest
There is certainly no love lost between Apple and Samsung after years of contentious courtroom battles. In a sign of how severe the dislike between the companies was, at one point Apple decided to seek other manufacturers of processor chips for their mobile devices instead of continuing with one of the biggest suppliers on the block, Samsung. Despite that enmity, which has been cooling recently, business is business. In this case, Apple is trying to get a smartwatch out to market and that means they need chips for the devices. A new report indicates Apple has decided to utilize Samsung as the supplier for their forthcoming wearable.
The processor will be one part of Apple’s S1 system-in-package (SiP) which includes DRAM, NAND flash, the processor and some other peripheral chips. To supply the processor piece, Samsung will reportedly produce 3,000 to 4,000 12-inch wafers each month.
Analysts have already started the march to revise forecasts of Apple smartwatch sales downward for 2015. The wisdom seems to be the initial product may only sell 10 million units in 2015 while many consumers wait for the second generation smartwatch product from Apple to be announced. Although Samsung apparently has succeeded in winning the order for this round of Apple wearables, Taiwan Semiconductor Manufacturing Company (TSMC) is bidding heavily againt Samsung to win the contract for the next generation of the device. TSMC is the company that Apple shifted to as a supplier to replace the Samsung A8 chips in their other mobile devices.
source: Digitimes
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