Apple’s upcoming iPhone 7 expected to use Samsung-built chip and display

Currently, Samsung and GlobalFoundaries (through partnership with Samsung) have access to the former’s superior 14 nm FinFET process, a process that was used to manufacture Samsung’s Exynos 7420 SoC. Now, according to a source, Apple’s upcoming iPhone 7, which is also being called iPhone 6s will take advantage of Samsung’s superior technology and chips. Previously, the Cupertino tech giant had entered in to a deal with TSMC, in order to mass produce the firm’s A8 SoCs for its iPhone 6 and iPhone 6 Plus smartphones. Through this approach, Apple was able to diversify its supply chain resources along with reducing the dependency factor on Samsung.

Both TSMC and Samsung have invested heavily in order to meet the demand quota of both Apple and Qualcomm. According to the source, TSMC has invested a record $12 billion for the construction of plants and equipment, while Samsung has spent more than $3.7 billion in its processor business in 2014. That amount is expected to increase to $4.9 billion during the end of 2015. In addition, the South Korean smartphone giant is also investing a mammoth $15 billion in the construction of a new chip plant whose location is going to be outside of Seoul.

One of the reasons why Samsung is being preferred by companies such as Apple, Qualcomm and NVIDIA is because its superior architecture consumes less power and delivers more performance. Through this process, the tech giant has managed to outpace TSMC. TSMC has admitted that although Samsung has taken the lead over the chip making company, TSMC plans on gaining the upper hand in 2016, with its 10 nm chips.

According to the latest report, Samsung will continue being the primary supplier for Apple, along with other components such as displays for future Apple products. Apple A9 SoC, which is expected to be present in the company’s latest iteration of mobile devices are going to be launched this year, most likely during the month of September.