South Korean conglomerate Samsung Electronics Co. Ltd. (SSNLF) will supply application processors for Apple Inc.'s (AAPL) next iPhone, the South Korea-based Maeil Business Newspaper reported Monday, citing sources in the semiconductor industry.

Samsung will reportedly supply the application processor A9 for Apple's next handset model, the iPhone 7, and also be responsible for about 75 percent of the chip production for the smartphone.

The A8, iPhone 6's application processor, was solely supplied by Taiwan Semiconductor Manufacturing Co. or TSMC, the world's largest chip foundry operator.

According to the Maeil Business Newspaper report, Samsung will also supply the application processors for its own next flagship smartphone, the Galaxy S6.

The company had so far used Qualcomm Inc.'s (QCOM) Snapdragon 810 AP for its premium smartphone, but reports indicate that the chip is currently facing issues of overheating.

The next Samsung model, to be showcased probably in March 2015, is likely to feature Samsung's own Exynos application processor. Samsung had earlier used Exynos for part of the Galaxy Note 4 supply.

Samsung's decision to move away from Qualcomm's applications processors is expected to enable the Korean company to expand its market presence in application processors and also bring about significant changes in the global chip market. Samsung accounts for about 10 percent of Qualcomm's annual sales.

On the Korean Stock exchange, Samsung shares are currently trading at 1,385,000 won, down 1,000 won or 0.07 percent on a volume of 0.12 million shares.

For comments and feedback contact: editorial@rttnews.com

Business News