Seeking Alpha

TSMC to reportedly handle majority of Apple A8 CPU production

  • South Korea's Hankyung reports TSMC (TSM -0.1%) will manufacture 60%-70% of Apple's next-gen A8 CPUs, and Samsung (SSNLF.PK, SSNGY.OB) the remaining 30%-40%.
  • The WSJ reported in July TSMC will begin manufacturing some A-series CPUs in 2014, but added Samsung will remain the primary supplier through year's end (this could still be the case even if TSMC handles a majority of A7 output).
  • The A8 is expected to use a cutting-edge 20nm manufacturing process. Both TSMC and Samsung are looking to ramp 20nm production in early 2014.
  • Apple's A7, which is found in the iPhone 5S and should (in some form) go into the 5th-gen iPad, is made by Samsung using a 28nm process.
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