Apple is set to ask long-time rival Samsung Electronics to supply 80% of the processors used in its iPhone and iPad devices.
While Apple and Samsung claim technical superiority for their respective smartphones, many of the components come from the same factories. Samsung originally supplied Apple with a range of components used in the iPhone, including the memory chips, displays and processors.
However, a high-profile series of patent disputes led Apple to look at other suppliers. In turn, when Apple attempted to switch its processor orders to Taiwanese chipmaker TSMC in November 2012, Samsung ended up slugging Apple with a 20% price increase for all outstanding orders.
According to a report in the Korea Times, from late 2015 or early 2016 Samsung will supply Apple with 80% of its processors, with GlobalFoundries taking care of excess orders and TSMC manufacturing the rest.
A key factor in the decision was that Samsung uses a finer 14-nanometer chipmaking technology that allows it to make smaller and faster chips than the 16-nanometer technology used by TSMC.