Samsung was originally a major supplier of Apple components, supply NAND flash memory and DRAM memory chips. However, from 2011 onwards, Samsung began to reduce the supply of parts for Apple. Because in that year, Apple to infringe the patent, Samsung will be brought to court. According to the iFixit dismantling report, Samsung is now only to the iPhone 7 supply DRAM chip.

Display panels and memory chips (NAND flash and DRAM memory chips) has always been the most expensive Apple iPhone above some of the components. The 32-gigabyte version of the iPhone 7, for example, accounts for more than a quarter of the total cost of materials ($ 219.80), according to market research firm IHS Markit. It is reported that Samsung will once again supply the next generation of iPhone OLED display and NAND flash memory chips. The provision of DRAM chips will allow Samsung from hundreds of suppliers stand out as the next major supplier of iPhone.

OLED display

According to Bloomberg reported that Apple will launch next year with a curved screen next-generation iPhone, the new iPhone with OLED display, and Samsung will become the exclusive OLED display suppliers.

In the OLED display market, Apple's choice is not much, after all, Samsung dominates the market. "At present, Samsung is the only company in the flexible OLED display market to achieve mass production, and in the OLED (OLED) market," said Jeff Kim and Kevin Kim, two analysts at Hyundai Securities, Smart phones and OLED display market are ranked first.

Memory chip

Samsung is the world's largest supplier of NAND flash memory chips, with more than one-third of global market share. According to South Korean media ETNews reports, because of its many business, Samsung over the past few years, Apple NAND flash memory needs ignored. But now Samsung needs more buyers like Apple in order to fully tap its new semiconductor manufacturing capacity of the factory.

In 2014, Samsung has invested 156 trillion won (about 14.7 billion US dollars) in Korea, a new local chip factory, which is Samsung's single factory for its largest investment. According to ETNews reports, the new plant will be put into production next year, Samsung will once again provide Apple with flash memory chips.

In fact, Apple can not completely clear the relationship with Samsung. At present, Apple from a number of suppliers to purchase NAND flash memory, but not the largest supplier of Samsung NAND flash memory chip products, the reasons seem untenable. In addition, because Samsung has a mobile DRAM market share of about 60%, Apple will inevitably use Samsung DRAM memory chips.

A series of chips

As the existence of TSMC, chip foundry Samsung is currently facing the only area of ​​intense competition. After Samsung and TSMC are Apple OEM manufacturing iPhone 6 mobile phone using the A9 chip, but TSMC then won the iPhone A7 production of the exclusive contract for the iPhone is expected to launch next year Apple iPhone next year, TSMC will still be A11 The only supplier of chips.

TSMC's strength lies in its integrated FoWLP packaging technology, which the company says has resulted in improved packaging speed and thickness, as well as increased wafer thermal performance. Len Jelinek, senior director of semiconductor manufacturing at market research firm IHS Markit, said, "Package design improvements and chip design optimization will give Apple the edge in SoC performance and board assembly physics," said Len Jelinek, senior director of semiconductor manufacturing at market research firm IHS Markit. Advantage, this technical improvement will help TSMC get Apple orders.

Interdependence

Samsung is a vertical integration of electronic equipment manufacturers, the advantage of mobile phones and parts of the good synergies between. And for economies of scale considerations, Samsung also has many large manufacturing plants, to produce parts in addition to meet the needs of their own smart phones, but also need such important parts of Apple buyers.

Although Apple's current parts and components from a number of vendors, but it also needs a stable supplier to mass production of high-quality components, Samsung is undoubtedly a suitable choice. Although there are competition and legal disputes, but Apple and Samsung, the world's two largest smart phone manufacturers, still need to interdependence, who can not do without each other.

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