Samsung may face a whole new kind of trouble from Apple's iPhone this year and next. Reports out of South Korea indicate the TSMC will make all the A-10 processors for Apple's next flagship phone cutting Samsung out of the picture.
TSMC is planning to enter a state of mass production starting from June according to the report.
interestingly this is not the first time that this has happened the report says TSMC actually made all the 20 nm A8 chips for iPhone 6 in 2014 leading to huge losses for that wing of Samsung.
Sammy was able to win back half of apples a A9 business in 2015 but now it's back to all TSMC for 2016 at least for the A10.
Apple will of course still need A9's for the iPhone 6s and 6s Plus assuming it plans to keep them around as well as less expensive model past the fall.
Additionally the world doesn't know who will make chips for the revamped 4" iPhone people are expecting, assuming Apple's actually making a revamped 4" iPhone but losing the flagship phone hurts.
The Associated Press indicating that Samsung has entered a state of emergency system to keep its factories from closing plus it has to keep it's eyes on 2017.
According to Associated Press piece
it is also important for Samsung electronics to plan out high-intensity innovations so they can take back Apple supplies and 7 nm but for now it's all bad news for Samsung and it's going to be hard to be profitable in 2016 without Apple's orders for the A-10
What is interesting here is that although Samsung is winning the mobile phone wars in terms of market share it still has an incredibly reliance on the iPhone in terms of profitability and stability.