South Korean electronics giant Samsung will supply as much as 75 per cent of the processors for Apple’s next iPhone, according to the Maeil Business Newspaper.
Production of the A9 system-on-chip at Samsung’s factory in Austin, Texas, reportedly started late last year using its latest 14nm processor.
If the report is accurate, Samsung will regain its position as the top chip supplier for the iPhone after Apple shifted most of its orders for the A8 used in the iPhone 6 to Taiwan’s TSMC, the largest chip foundry in the world.
The news comes less than two weeks after reports surfaced that Samsung was switching from using Qualcomm’s Snapdragon 810 processor in its next series of Galaxy S smartphones to its own Exynos chip because of overheating issues.
Meanwhile, the Korea Times said Samsung is expected to announce on Thursday a 40 per cent increase in its dividend for 2014. The move is an effort to shore up its share price but is less than the 50 per cent increase it announced in November along with a $2 billion share buyback.
Sources said with a year-end dividend of 20,000 won ($18.50), its total dividend payout will be KRW3 trillion ($2.8 billion), compared with KRW2.16 trillion in 2013.
Last week it was reported that the company is considering a stock split to keep restless investors happy and make it easier for retail investors to buy shares, which closed last week at KRW1.385 million ($1,280).