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Thursday, July 17, 2014
TSMC Losses Chip Orders From Apple, Qualcomm: reports

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has reportedly lost orders for next-generation chips from Apple and Qualcomm.

Apple recently chose TSMC over Samsung to make the majority of chips for the successor to its iPhone 5 series of smartphones. According to industry sources,TSMC recently started to mass-produce A8 Aps - core components for the next-gen iPhone model - through a 20-nm process.
That was also highlighted during the company's report of high quarterly profit, and expectations for revenue to grow at least a record 20 percent this year.

But both Apple and Qualcomm will likely buy a larger proportion of 14 nanometer smartphone chips from Samsung rather than TSMC beginning in the second half of 2015, KGI Securities analyst Michael Liu said in a note to clients.

The Commercial Times on Thursday, citing market speculation, said Qualcomm has already started working with Samsung to develop the chips. The Economic Daily News said without citing sources that Qualcomm had placed orders with Samsung.

During the conference, TSMC Chairman Morris Chang said the company's market share in 16 nanometer chips - which perform similarly to 14 nanometer chips - will be smaller than "a major competitor" next year, and that TSMC will regain a leading share from 2016.

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