Case 5:19-cv-00036-RWS Document 66-39 Filed 08/27/19 Page 1 of 3 PageID #: 3481
`Case 5:19-cv-00036—RWS Document 66-39 Filed 08/27/19 Page 1 of 3 PageID #: 3481
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`Case 5:19-cv-00036-RWS Document 66-39 Filed 08/27/19 Page 2 of 3 PageID #: 3482
`8/22/2019
`Samsung to manufacture iPhone chips for Apple again, report says - The Washington Post
`The Washington Post
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`Innovations
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`Samsung to manufacture iPhone chips for Apple again, report says
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`By Alex Schiffer
`July 18, 2017
`After a five-year hiatus, Samsung Electronics will return to manufacturing chips for Apple’s new iPhone in
`2018, according to a report from the Korea Herald.
`
`The South Korea-based electronic company was a primary producer of iPhone chips until 2013, when Apple
`awarded its rival Taiwan Semiconductor Manufacturing Company (TSMC) exclusive production rights. In 2011,
`Apple sued Samsung over patent infringement, and the company cut down the number of components it got
`from its competitor from that time.
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`The Herald, which relied on unnamed sources, reported that Samsung’s chances at producing iPhone chips
`again picked up in June when Kwon Oh-hyun, one of Samsung’s three co-chief executives who is in charge of
`chips among other things, visited the Apple headquarters in California last month. Samsung announced in
`March that it would purchase specialized machines, reportedly in an attempt to produce seven-nanometer
`processors for the iPhone and regain Apple’s business.
`
`Sources told the Herald that Samsung’s ties to organic light-emitting diodes, an LED used in phones, is what
`caused Apple to get Samsung back into the mix for processors. Samsung is the world leader in OLED
`manufacturing, with 95 percent market share, and will probably be the lone OLED supplier for the upcoming
`iPhone.
`
`TSMC will still play a role in supplying chips for next year’s iPhones, according to the Herald. It also said
`Samsung will share some iPhone orders next year that “have been monopolized by TSMC.” It plans to complete
`its tests on the new chip-making machines in the near future before seeking Apple’s approval.
`
`Samsung had one of its most profitable quarters in company history earlier in the year, with $8.7 billion in
`operating profit, a 48 percent increase from the previous year. Total revenue for the quarter was $44.5 billion,
`with the majority of business coming in semiconductor and display divisions. At the time of its announcement,
`the company also said that demand for chips and memory had increased over the course of the quarter.
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`https://www.washingtonpost.com/news/innovations/wp/2017/07/18/samsung-to-manufacture-iphone-chips-for-apple-again-report-says/
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`Case 5:19-cv-00036-RWS Document 66-39 Filed 08/27/19 Page 3 of 3 PageID #: 3483
`8/22/2019
`Samsung to manufacture iPhone chips for Apple again, report says - The Washington Post
`Apple and Samsung didn’t respond to requests for comment.
`
`Alex Schiffer
`Alex Schiffer covered business, finance and technology for The Washington Post. He left The Post in August 2017. Follow 
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`https://www.washingtonpost.com/news/innovations/wp/2017/07/18/samsung-to-manufacture-iphone-chips-for-apple-again-report-says/
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