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Apple CPU order raises concerns over TSMC chip supply

Posted on Wednesday, November 28 2012 @ 14:07:01 CET by

TSMC logo
DigiTimes reports semiconductor firms are concerned about the distribution of TSMC's production capacity as it now seems more likely that the Taiwanese foundry will start production chips for Apple's next-generation of iOS devices. Until now, Samsung Electronics has been the sole supplier of iPhone and iPad processors, and TSMC's current clients fear the huge demand from Apple may impact their allocation of TSMC's available advanced process capacity.
TSMC's advanced process offerings serve the world's major fabless IC firms including Altera, Qualcomm and Nvidia. While being capable of providing sufficient capacity to Apple, TSMC also does not want to upset its existing major clients, the observers noted. Allocating efficiently its production capacity will be a focus for the foundry in 2013, the observers believe.

Apple's iPhone and iPad devices collectively demand almost 200 million CPUs every year, the observers estimate. TSMC will need at least more than 200,000 12-inch wafers ready to satisfy the huge demand from Apple, the observers said.

In addition, market observers are paying close attention to how significant Apple's orders will contribute to TSMC's revenues and profitability in 2013.



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