Samsung was known to produce certain components of various Apple products like iPhones and iPads, and even in the midst of all this business going on over the patent dispute that has still not completely finished(thanks to Apple's appeal of Judge Lucy Koh's decision last year to deny Apple the sales ban)it's nice to know that Apple can find the time to accept and choose Samsung as a key manufacturer to provide them with components for their upcoming Apple Watch. According to Digitimes who is first reporting on this matter, Samsung will be manufacturing the S1 system-in-package chipset for the Apple Watch, of which it will be designed specifically for.
The Apple Watch is set to launch in March of this year, and in leading up to that launch Apple is said to be preparing for production by placing orders from Samsung for 3,000-4,000 12-inch wafers on a monthly basis for the chipset that is to be built inside of the watch. Samsung is also reportedly going to be producing more iPhone and iPad processors going forward for the new year. Even though Samsung may be looking at paying out a potential huge sum to Apple over last year's patent infringement case, with the orders for the iPhone and iPad processors as well as for the new Apple Watch chipsets, they'll likely be gaining all that back and then some in new revenues.
Chock this up as a major win for Samsung, who will likely continue to be the provider of chipsets for certain Apple devices for a while we would guess. Although Digitimes also notes that their source mentions Samsung could be looking at some competition when it comes to fulfilling orders for the chipsets on the second gen. Apple Watch from semi conductor company TSMC. Whether or not Apple will go with Samsung or TSMC or both for the Apple Watch's successor will have to wait to we get much closer to that time period, as the first gen. Apple Watch hasn't even been launched yet. In any case, Samsung is still making a ton of money off of Apple.