Samsung seeks to supply Apple with an important part of the latter's M2 chip series
![Samsung seeks to supply Apple with an important part of the latter's M2 chip series](https://m-cdn.phonearena.com/images/article/139809-wide-two_350/Samsung-seeks-to-supply-Apple-with-an-important-part-of-the-latters-M2-chip-series.jpg?1650757653)
Apple's initial line of M-series chips includes the M1, M1 Pro, M1 Max, and the M1 Ultra. Built by TSMC using its 5nm process node, these SoCs feature a large number of transistors starting with the M1's 16 billion and moving ahead to the 33.7 billion on the Pro, 57 billion on the Max, and the whopping 114 billion on the Ultra (which is essentially two M1 Max chips combined.
The M-series chips are based on Arm's architecture and the M1 is employed inside the latest versions of the iPad Pro and iPad Air. Apple has finished the M1 series and is now moving on to the M2. One of Apple's main rivals says that it wants a role in Apple's M2 supply chain. Samsung, which was involved in the production of the M1 series, wants to continue peddling supplies to Apple for the M2 series.
![Under investment in the low-margin substrate industry has led to shortages - Samsung seeks to supply Apple with an important part of the latter's M2 chip series](https://m-cdn.phonearena.com/images/articles/388193-image/substrate.jpg)
Under investment in the low-margin substrate industry has led to shortages
According to SamMobile, Samsung supplied Apple with FC-BGA (full-chip ball grid array) substrates that are used by CPUs and GPUs that have a large number of circuit connections. A substrate used in the production of chips is basically a thin copper wire placed in resin that helps transmit user instructions to chips and relay the answers. It is used because the extremely thin wiring attached to chips can't handle being soldered directly to a circuit board.
In other words, a substrate helps connect a chip to the motherboard of a device. As important a task as that is, it is not as high tech as other parts of a chipset are and margins are low.
Last December, Samsung invested 1.3 trillion Korean won ($1.04 billion USD) to build an FC-BGA substrates factory in Vietnam. The company also spent another 300 billion won ($241 million USD) on its existing FC-BGA substrates facility in its home country of South Korea.
Will Samsung get the job? Considering that there has been under-investment in the production of substrates (typical for such a low-margin business), supplies are tight and Apple has been known to tie up production for years in situations like this. And if Apple doesn't go with Samsung, there are many chipmakers that need to find a source for advanced substrates.
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