Samsung denies 20 price hike on chips sold to Apple

A couple of days ago, Korean publication Chosun Ilbo reported that Samsung had increased by 20%, the price it charges for Apple’s AX line of processors. According to the report, Apple had no other choice but to pay since no other company can produce the necessary volume of chips that Samsung can at this point. On Wednesday, another Korean publication, The Hankyoreh, quoted an anonymous Samsung executive as saying that the price increase never happened.

The Samsung built A6 processor is used in the Apple iPhone 5

According to the unnamed Samsung executive, prices for the processors are determined at the beginning of each year and cannot be easily changed in the middle of the agreement. Regardless of how much Samsung is charging, and which story is true, it does appear that Apple is looking to make a switch to TSMC sometime down the road. Apple and Qualcomm each allegedly offered the chip manufacturer $1 billion for the total output of  20nm chips that would be turned out by the company at a dedicated foundry. The offer was turned down as TSMC said that it wants to remain flexible for other OEMs.

Meanwhile, there is speculation that Samsung has canceled the construction of a new logic fabrication facility due to the possibility that the Korean manufacturer will lose orders from Apple for its next-generation chip. We can’t say for sure that this is all based on the acrimony each side has for the other after all of the legal battles, but it wouldn’t be a surprise to find out that it was a factor behind both Apple and Samsung’s actions.

source: The Hankyoreh, TheStreet via AndroidAuthority

Samsung denies 20 price hike on chips sold to Apple