The capacity utilization rate of TSMC's 28nm process will be able to maintain at 80% in August, but will drop to 75% due in part to dwindling demand and in part to increasing competition, the sources estimated.
Globalfoundries is believed to have offered price incentives, such as a reduction in photo mask charges, to win orders from Qualcomm, the sources indicated.
Additionally, Qualcomm's orders will also be seen as an endorsement to Globalfoundries' 28nm process, enabling the US-based foundry house to lure more 28nm orders from other potential clients, added the sources.
Qualcomm switches some chip production from TSMC to Globalfoundries
Posted on Wednesday, Aug 07 2013 @ 19:07 CEST by Thomas De Maesschalck