The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Business
  • Tech
  • Bio
  • Companies
Thu, June 30, 2022 | 13:03
Tech
Apple Moves to Self-Produce Key Chips
Posted : 2010-04-19 16:58
Updated : 2010-04-19 16:58
Print Preview
Font Size Up
Font Size Down

Steve Jobs, left, Apple’s CEO, holds an iPhone at a recent technology show, while Samsung Electronics’ semiconductor chief Kwon Oh-hyun is seen on the right in this file photo. Apple is injecting resources toward making its own chips. The U.S. consumer electronics company has a plan to embed the internally designed application processor (AP) in its next 4G iPhone models. The strategy shift by Apple is not good news for Samsung, which supplied its APs for Apple’s 3G iPhones. / Korea Times File

Action May Pinch Chief Supplier Samsung Electronics

By Kim Yoo-chul
Staff Reporter

The situation seems negative for Samsung Electronics as one of its biggest overseas partners ― Apple ― is heavily injecting cash into its own chips.

That means the California-based consumer electronics company will use an internally designed application processor (AP) in its upcoming 4G iPhones, officials and market watchers say.

The AP is the main electronic brain for most high-end digital devices such as smartphones. The function of the non-memory chip is comparable to the CPU in PCs.

While DRAM and NAND flash memory chips are just used to read, write and store data, the AP controls the whole operating system, and also promising sustainable and steady profits regardless of volatile market situations in chips.

Samsung Electronics, the world's top vendor of memory chips but a second-tier player in the more profitable non-memory sector, has so far been supplied APs for Apple's 3G iPhones, Samsung officials say.

The upgraded iPhone is expected to make its U.S. debut by the first half of this year.

"iPhones have been using Samsung Electronics-produced APs that were partially designed by Apple engineers. But Apple has decided to use its own AP for its 4G models," a high-ranking industry executive told The Korea Times, Monday.

"That's not good news at least for Samsung Electronics' system LSI business," he said, adding the company has partially proved its technology capability in the non-memory sector by providing its APs to Apple's iconic gadgets.

Samsung's system LSI unit is handling the company's less-volatile, non-memory business. Samsung, which is aiming for $25.5 billion in total chip sales by 2012, is struggling to yield visible results in this sector.

The company is still in the "testing phase" to upgrade the prowess of its mobile APs for use in its own smartphones.

Apple's own A4 chip was confirmed to have been used for the iPad.

When contacted by the newspaper over Apple's latest decision, Kim Choon-gon, a Samsung Electronics spokesman, declined to comment citing the sensitivity of the issue. Steve Park, a representative of Apple's South Korean branch, also wasn't available.

Apple's "departure" forecast after the U.S. company bought semiconductor designer P.A. Semi Inc. for $278 million in April 2008. P.A. Semi's technology has an edge in low-power chips, which explains the iPad's 10-hour battery life, analysts say.

Not Whole Crunch

But the effect of Apple's transition towards the development and use of its own processors on Samsung Electronics is expected to be limited as Samsung is the biggest supplier of its NAND flash memory chips for most of Apple's popular consumer products.

"Apple's action to put its own processors in strategic products is a blow to Samsung's system business. Overall, however, it won't see a profit decrease in its semiconductor business due to the upbeat mood in the global chip market," Park Hyun, an analyst at Prudential Investment, said.

Samsung executives say the company will produce processors developed by Apple on a contract-based foundry service. Foundry is a manufacturing process, which has been widely adopted by chipmakers to save on the skyrocketing costs of research and development (R&D).

"It's going to be OK for Samsung in terms of revenue growth in chips. But Apple's switch means Samsung is still a long way off becoming a top-tier semiconductor company for both memory and non-memory chips," an industry watcher said.
Emailyckim@koreatimes.co.kr Article ListMore articles by this reporter
 
LG
LG
  • Bodies found in missing family's car in Wando
  • How I lost my period after shooting my first 'body profile'
  • Korea looks to Europe to diversify trade partners as China's growth slows
  • Luna collapse causes chaos
  • [INTERVIEW] 'Asia-Pacific region has potential to lead global decarbonization sector'
  • Yoon, first lady attend gala dinner hosted by King of Spain
  • Korea's first NATO summit to show expanded global role: experts
  • Korea will stick to principles despite China's objection, PM says
  • SK Bioscience gets final approval for Korea's 1st COVID-19 vaccine
  • Inflation expectations in S. Korea hit 10-year high in June
  • [INTERVIEW] With unusual nicknames and backgrounds, MIRAE eyes becoming next big K-pop star [INTERVIEW] With unusual nicknames and backgrounds, MIRAE eyes becoming next big K-pop star
  • [INTERVIEW] Jean-Michel Othoniel's glass garden of enchantment 'is for everybody' [INTERVIEW] Jean-Michel Othoniel's glass garden of enchantment 'is for everybody'
  • Girl group aespa to perform in 'Good Morning America' 2022 Summer Concert Series Girl group aespa to perform in 'Good Morning America' 2022 Summer Concert Series
  • [INTERVIEW] Park Hae-soo talks about differentiating his character in 'Money Heist' remake [INTERVIEW] Park Hae-soo talks about differentiating his character in 'Money Heist' remake
  • Park Hae-il 'honored' to play war hero Admiral Yi Sun-sin in 'Hansan' Park Hae-il 'honored' to play war hero Admiral Yi Sun-sin in 'Hansan'
DARKROOM
  • Afghanistan earthquake killed more than 1,000 [PHOTOS]

    Afghanistan earthquake killed more than 1,000 [PHOTOS]

  • Divided America reacts to overturn of Roe vs. Wade

    Divided America reacts to overturn of Roe vs. Wade

  • Namaste: Yogis to celebrate International Yoga Day

    Namaste: Yogis to celebrate International Yoga Day

  • Poor hit harder by economic crisis

    Poor hit harder by economic crisis

  • Roland Garros 2022

    Roland Garros 2022

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group