Apple-iPad-4G-familyStarting in 2016, Samsung will make the majority of chips for future iPhones and iPads.

Apple this year switched away from Samsung and had a company called Taiwan Semiconductor Manufacturing Co. (TSMC) make most of the iPhone and iPad chips.

The new deal means Samsung will make 80% of Apple’s iPhone and iPad chips again,  and the deal is worth “billions,” according to the report.

Apple designs its own chips for the iPhone and iPad, but needs a manufacturing partner to actually build them. Historically, that manufacturer has been Samsung. But it switched to TSMC this year.

Still, even though Samsung will be making most of Apple’s chips again, it still faces a big challenge in its smartphone business. Android manufacturers like Xiaomi and Lenovo are able to make devices with high-end specs but cost about half as much as a Samsung phone.

Via: BI