TSMC to be a winner for Apple chips

Apple blossom, Mike MageeWhile the Taiwan Semiconductor Manufacturing Co (TSMC) already makes semiconductors for Apple that generate 20 percent of its considerable revenues, it looks like the next generation of microprocessors for future iPhones and tablets will make even more money for the foundry giant.

TSMC is a “pure play foundry”, that is to say it makes chips at its fabrication plants based on designs from customers that don’t have their own manufacturing capabilities, such as Apple, Nvidia and others.

Currently, it and Samsung share the spoils for manufacturing Apple chips, but according to a report in the Taipei Times, TSMC could win 50 percent of the orders from Apple next year for its new chip – the A10 – because of its improved process in its fabrication plants.

TSMC still makes the A8 microprocessor for the iPhone 6 and iPhone 6 Plus but revenues will decline from that.

Apple typically second sources chips and equipment it sells to hedge against manufacturing problems.