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Samsung Can't Confirm that they Have Apple Chip Orders

10. News
A report out of Korea today states that Taiwan's TSMC began the risk production of the 16nm FinFET plus (16FF+) process, and began to produce chips in July, much earlier than the original anticipated Q3. Apple is adjusting the A9 chip production quantity shuttling between Samsung (SEC) and TSMC. Although the report hints of Samsung working on the A9 processor in Austin Texas, the report clearly states there's no firm order.

 

The Korean report concluded quoting Samsung (SEC) saying that "We said we would inject production wafers when we announced Q3 performance. But we cannot confirm whether we received orders from Apple or at which plant it will be produced." That was conveniently placed in the last paragraph of the report, after their propaganda paints another story.

 

Samsung is in bad shape as we all know and is desperate for work. Samsung lost orders to Apple in the past because of the patent infringement lawsuit being bitterly fought by Samsung right up until days ago. So at the moment nothing has really changed.

 

The report is quoting "industry insiders" and not Samsung or Apple for making this reported request. The report clearly states that the industry insiders "guessed" that the Austin plant was chosen because "of the next-generation chip's problems with performance security and supply." Adding that there were such problems with Apple's A9 sounds more like the Korean press is trying to counter headlines that Samsung and LG could be in trouble due to Qualcomm's next-gen processor failing due to multiple problems. Why would Apple give Samsung orders who are claiming that the next-gen A9 already has problems? 

 

In the end, I wouldn't trust this rumor because Samsung denies having an order and so we're left with the word of "industry insiders" who are guessing it is so. Give me a break. I'm sure in an emergency Samsung will get some of Apple's A9 orders, but this report doesn't confirm anything we can really count on.

 

In fact, this rumor report includes the true backdrop of the report in that Korean securities companies predict that Samsung's System LSI Business, including the foundry business will suffer a loss to the tune of KRW 800 billion this year. So trying to show that Samsung might have an Apple order is only in Samsung's interest. 

 

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