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iPhone 7 Rumors: Samsung Out Of The Race To Supply Apple A10 Chipset

Update Date: Dec 11, 2015 02:31 PM EST

The coming of Apple iPhone 7 compounds Samsung's worries multi-fold, new reports claim. And it is not the competition to its devices alone.

Citing analysts, reports claim that the South Korean electronics giant may have lost Apple's clientele to a Taiwanese company for making the A10 chipset that will power next year's phone. The Taiwanese company TSMC, along with Samsung, made the A9 chipset for this year's iPhone 6S but TSMC went solo to provide chipsets for iPhone 6, BGR reports.

TSMC has an ace up its sleeve in its 'Integrated Fan Out' technology that can help Apple make slim iPhones, thinner than the 6.9 mm-thick iPhone 6. Analysts indicate that Samsung has lost ground, reports Forbes. This also ups the performance bar for Samsung's flagship devices.

"We believe TSMC could have close to a 100% market share in Apple's new A processor (A10) foundry service in 2016 and use its Integrated Fan-Out (InFO) technology for packaging. With the InFO technology, we expect Apple would benefit from better performance with smaller form factors," analyst Bonil Koo said, adding that Samsung would lose the IC substrates business for which it has been one of the suppliers, as InFO would not need IC substrates.

The silver lining for Samsung is that the technology would soon become available to it along with other manufacturers and even the playing the field.

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