TSMC ex­pected to se­cure ma­jor Ap­ple A10 chip or­ders in 2016 ahead of iPhone 6 suc­ces­sor’s launch

The China Post - - LOCAL -

Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC), the world's largest con­tract chip maker, is ex­pected to se­cure more than half the or­ders for Ap­ple Inc.'s new mo­bile chip in 2016 thanks to bet­ter pro­duc­tion ca­pac­ity plan­ning.

"The Tai­wanese man­u­fac­turer has a clearer roadmap for ca­pac­ity plan­ning next year, so we ex­pect it to gain a higher mar­ket share next year," an an­a­lysts at a Euro­pean bro­ker­age told CNA in a re­cent in­ter­view, re­fer­ring to more than 50 per­cent of the or­ders for Ap­ple's "A10" chips in 2016.

How­ever, or­ders for Ap­ple's A9 chips for the next iPhone in the fourth quar­ter of this year should be "shared equally" by TSMC and its South Korean ri­val Sam­sung Elec­tron­ics Co., said the an­a­lyst, who asked not to be named be­cause he was of­fer­ing spe­cific fore­casts that could im­pact the mar­ket.

The an­a­lyst

es­ti­mated

that Ap­ple's A9 chip or­ders will ac­count for more than 20 per­cent of TSMC's over­all rev­enue this year, which should off­set the com­pany's de­clin­ing rev­enue from mak­ing the A8 chip for the cur­rent iPhone and 6 Plus mod­els.

In other words, TSMC could still boost its an­nual rev­enue by "dou­ble dig­its" in 2015, de­spite stronger com­pe­ti­tion from its Korean ri­val, the an­a­lyst said.

TSMC, which in­cludes chip de­sign­ers Qual­comm Inc., Texas In­stru­ments Inc. and Nvidia Corp. as clients, has forecast a 7-8 per­cent fall in sec­ond-quar­ter sales, cit­ing in­ven­tory ad­just­ments in the IC in­dus­try in the cur­rent slow sea­son.

At a tech­nol­ogy sym­po­sium held on May 28, Y. P. Chin, vice pres­i­dent of oper­a­tions and prod­uct de­vel­op­ment at TSMC, said the com­pany would con­tinue to de­velop ad­vanced 16 nanome­ter ( nm) and 20nm pro­cesses to lift over­all pro­duc­tion ca­pac­ity.

Chin also said that the ca­pac­ity of these pro­cesses is ex­pected to dou­ble this year from last year and rise an ad­di­tional 50 per­cent next year.

TSMC shares closed flat at NT$146 (US$4.72) on Fri­day on the Tai­wan Stock Ex­change com­pared with a 0.15 per­cent drop in the weighted in­dex.

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