The iPhone 7 is set to pack a upgraded Apple-designed processor, and a new report suggests that Samsung may have already lost its chance to supply the latest chip. Instead, 100 percent of the order will allegedly go to rival firm TSMC.,
The news comes from HSBC, which recently upgraded the Taiwanese chip-maker’s stock from Neutral to Buy based on reports of the A10 deal. Production of the new processor is expected to bring in $300 million for TSMC in 2016. By 2017, the company could make as much as $1 billion off total A10 chip sales.
There are a few reasons Apple is likely to pick TSMC over Samsung for A10 production. The biggest factor may be the current A9 processor, which was split between the two chip-makers. This decision backfired, with various reports claiming Samsung’s version of the A9 was inferior, though Apple’s official stance is that the difference isn’t noticeable in real world use.
Previous reports also suggest TSMC is close to perfecting a new type of chip design called Integrated Fan-Out (InFO). This makes it possible to mount the processor straight onto a device’s circuit board, allowing for a thinner overall design. That could mean an even slimmer iPhone 7, which is always a plus for Apple.