Left without orders for chips from the Apple company, those from Samsung intend to sell their factories where they produce such components. Those from Apple contracted Samsung to manufacture all the iDevice chips that integrated the processor, RAM memory and possibly the component that stores the data recorded by Touch ID.
Starting with 2014, the Apple company substantially reduced the orders placed with the Samsung company for the manufacture of these components. In 2015, Samsung received only 50% of the orders for the A9 chips dedicated to iDevices, and in 2016 the percentage was reduced to zero by Apple, with TSMC receiving most of the orders.
For the A11, it seems that Apple does not intend to change its intentions, so TSMC will once again receive exclusivity, while Samsung will receive nothing. Samsung expected to receive at least a third of the production of the future A11 chip for iPhone 7S and iPhone 8, but those from Apple decided to continue "in the hands" of the Taiwanese from TSMC.
Samsung is selling its division that produces chips
With the prospect of a new year without collecting billions of dollars from Apple, those from Samsung are trying to sell the factories where these chips were produced. Samsung collects up to 9 billion dollars annually from Apple to manufacture these components, and the loss is an extremely painful one, based on the fact that it constantly copied Apple's products and not the inability to offer components without defects.
"The company is planning to separate the design and manufacturing sectors in the business unit and divide or spin it off to fabless and foundry business divisions. The consideration came after the company lost Apple, the largest customer in the sector of application processors (AP), which refers to the brain of smartphones, to Taiwan's TSMC and some raised awareness towards the need to separate the foundry business division."
By selling this business, Samsung will keep the factories where it produces chips for mobile terminal screens and sensors for their cameras. Through the sale, the Koreans hope to reorganize their company more efficiently to reduce the losses suffered following the cancellation of contracts by the Apple company.
Although Samsung copied Apple products year after year and continues to do so, those from Cupertino managed to hit it where it matters a lot and generated substantial losses.
