Samsung will start mass producing application processors (APs) for clients such as Apple, Qualcomm, and AMD, using its 14-nanometer process before the end of the year. This news confirms that Samsung has been tasked with producing Apple’s “A9″ processor, according to ZDNet.
Kim Ki-nam, president of the Korean electronic giant’s semiconductor business and head of System LSI business, said the new business will improve profits “positively.”
Apple is likely to use its A9 processor on 2015 iPhone and iPad models, and represents a change by Apple.
Out of the total volume of A8 chips found on the iPhone 6 and iPhone 6 Plus, Samsung is producing around 30 percent. The rest is being produced by Taiwan’s TSMC.
New iPads likely to be revealed later this month are also expected to use an A8 processor. The rumored 12.9-inch “iPad Pro” may use a graphics-enhanced version dubbed the “A8X.”
News that Samsung has been awarded the A9 contract doesn’t come as a surprise. In July, Reuters said that Samsung was likely to scoop up orders for Apple’s 2015 mobile processor.
This news comes as the South Korean electronics giant is struggling thanks to declining smartphone demand and increased competition in China and Europe.
Before the A8, Samsung was Apple’s only provider of microprocessors for iPhones and tablets.
See also: Samsung is making the displays for the ‘iPad Air 2′ and 12.9-inch ‘iPad Pro,’ Samsung’s new ads make fun of Apple’s iPhone 6, Apple Watch and botched live stream, and Samsung’s new Galaxy Note 4 ad calls Apple’s iPhone 6 Plus an imitation.