TSMC shares fall after rumors on Apple cuts
Taiwan Semiconductor Manufacturing Co. ( TSMC, ) reiterated Wednesday that its advanced 16 nanometer process used for chip production is proceeding smoothly, amid market speculation that Apple Inc. has pulled some of its orders.
Shipments of products made on the 16nm process will meet expectations, TSMC said, adding that there have been no order cuts.
According to rumors, Apple could transfer its orders from TSMC to Samsung Electronics Co. of South Korea for lower OEM prices, to prepare for the launch of its next generation of the iPhone.
TSMC could lose orders for 10,000 chips, bringing output down to only 20,000, according to the rumors.
The rumors have dragged down TSMC shares since the beginning of this week, when the Taiwanese company had to respond before the market closed to deny the rumors and stress that its 16nm process is working smoothly.