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Apple (AAPL) and Qualcomm (QCOM) reportedly offered TSMC (TSM) more than $1B apiece to secure...

  • Wednesday, August 29, 2012, 1:32 AM ET
    Apple (AAPL) and Qualcomm (QCOM) reportedly offered TSMC (TSM) more than $1B apiece to secure chip production capacity, only to have TSMC reject them in the name of maintaining flexibility. Qualcomm, which is expected to provide a baseband chip for the next iPhone that uses TSMC's 28nm process, has struggled to deal with TSMC's 28nm supply constraints, and has begun eying alternate sources. Apple has been reportedly planning to shift production of its app processors from Samsung to TSMC.
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This news story has 3 comments:

  •  
    In that earlier Reuters article on this, it was expected that TSMC would provide around 20% of the Apple A6 processor production. It may be an interesting coincidence, but Samsung reduced the number of workers in a Texas facility making the A5 processor recently. Whether that is due to contract changes or lower demand is tougher to determine.
    29 Aug 2012, 02:04 AM Reply Like
  •  
    They should shift, I mean they did just wint a patent suit for a billion dollars
    29 Aug 2012, 08:33 AM Reply Like
  •  
    What would be the expense of breaking contracts? Indications are that even with the extra investment in TSMC, it will take some time for them to approach the yield possible at Samsung. The other bit of news is Samsung appears to be making deals with Intel; if that works out, then any lost revenues from AAPL could be replaced. However, it remains to be seen if Intel can become a major player in mobile processors and components.

    http://seekingalpha.co...

    TSMC are currently a small part of the component makers. They may be able to quickly grow on this deal, though I doubt they will unseat the longer established companies.
    29 Aug 2012, 04:12 PM Reply Like
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