Apple has reportedly chosen Samsung over Taiwan Semiconductor Manufacturing Company (TSMC) as the primary supplier for its future application processors in a deal worth billions, claims The Korea Times (Via G for Games) citing sources familiar with the deal.



Starting in 2016, Samsung reportedly will supply 80 percent of Apple's supply of 14 nm application processors with TSMC supplying the remaining 20 percent. The key factor that boosted Samsung was its recent partnership with GlobalFoundries, a relationship which will enable Samsung to produce sufficient supply of processors to meet Apple's demand.

"Apple has designated Samsung as the primary supplier of its next A-series chips powering iOS devices from 2016 as the alliance with GlobalFoundries (GF) enabled Samsung to cut off capacity risk," a source familiar with the deal said.

During its recent conference call, Samsung confirmed that it is producing sample 14 nm chips for an unidentified customer with plans to mass produce the chips in 2015 and 2016. This latest Korean Times report claims Samsung will begin building the processors early next year in its South Korean plant with plans to expand production to the company's Austin, Texas facility and GlobalFoundries' New York factory in the coming year.