Samsung is said to be considering spinning off its chipmaking division in response to losing Apple’s A-Series chip business.
Apple’s A-series chip orders for iPhones and iPads used to be split between Samsung and TSMC, but Apple dropped Samsung for the A10 chip in the iPhone 7 and is reported to be doing the same for the A11 chip in next year’s iPhone …
Samsung had originally been expecting to win around a third of Apple’s orders for the A11 chip. This report appears to confirm rumors that Apple will instead give all of its A11 business to TSMC.
Business Korea reports that Samsung now plans to spin off the foundry business – which actually manufactures chips – from the chip design business which focuses on display driver chips and camera sensors.
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.
The company believes that the reorganisation will give it its best shot at growing the business after the loss of one of its biggest clients.
Samsung may now be focusing more on Android business, having recently won a large contract with Qualcomm, which makes the Snapdragon processors used in Android smartphones. It is also said to be in line to make chips for Tesla’s self-driving cars.
TSMC, meanwhile, is already looking ahead to 5nm and 3nm processes to help win future Apple business.
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