It’s worth noting that while Samsung will be manufacturing the chip, the Cupertino technology giant still designs the chip in-house with its engineer teams. Hilariously, Samsung doesn’t make its own chips either for the Galaxy line, and instead makes use of Qualcomm chips manufactured by TSMC.
Recode reports Samsung has invested a staggering sum — $21.4 billion — to ramp up capacity in its semiconductor and display businesses over the last year, and plans to spend even more in 2015 – presumably to appease Apple.
“That’s because Samsung holds a technological edge over TSMC when it comes to the latest manufacturing process. Samsung has managed to shrink the size of the transistors on its chips to 14 nanometers — effectively packing more processing power into a smaller space and consuming less power. TSMC is still at 20 nanometers.“