Samsung has signed a deal with both Apple and LG to provide DRAM chips for their next generation smartphones, according to an article in the Korea Times. Samsung reported a 64 percent drop in earnings for the fourth quarter of 2014, and many believe this drop was due to strong competition from Apple’s iPhone. In an effort to increase earnings, Samsung has expanded its semiconductor business, announcing that it planned to open a $14.7 billion chip plant that will be operational in 2017.
According to the report, this deal could be worth billions to Samsung as they would produce at least half of the memory chips Apple will require for the next version of the iPhone. There are rumors that Apple is asking Samsung to increase production as they plan to release their next generation phone, currently being called the iPhone 6S, in April 2015. The chips will also be used in the next generation of LG G4 devices.
Insiders claim that the new DRAM chip offers twice the density and Samsung is producing it using their less-expensive 20nm production method. In addition, the new chips provide better I/O performance. Samsung will provide up to half of the chips for the next generation iPhone, but reports are that they will provide as much as 70 percent of the chips that will be used in the iPhone 7.
Samsung recently announced that the next generation DDR4 RAM as well as a stackable 3 GB RMA/32 GB storage combo will begin mass production over the next few months. The LG G4 is scheduled to be launched around April and Apple is pushing to release a new iOS version in June. The agreement with Samsung indicates that both Apple and LG are looking for speed and operating improvements in their newer phone versions.
