TSMC to Snatch All of Apple’s A8 chip Orders?

17 Feb

Taiwan Semiconducting Manufacturing Co (TSMC), the world’s largest dedicated semiconductor foundry, will get the opportunity to produce all of Apple’s A8 chips in 2014, sources close to Technews say.

According to the sources, one of the main reasons why Apple’s long time chip supplier, Samsung, will not be producing upgraded chips for the next series of iDevices is that the yield rate of its 20nm process did not meet Apple’s standards. This has reportedly caused the Korean company to lose not just parts, but virtually all, of its potential A8 chip orders.

The 20nm manufacturing technology that is employed by TSMC, by comparison, is said to be relatively more “efficient” and “smooth,” and allegedly has an improved yield rate of 50-70%, according to a recent report from Deutsche Securities.

Technews’ unnamed sources are claiming that the Taiwanese manufacturer will be making all of Apple’s A8 chips for the time being, whereas Samsung will continue manufacturing Apple’s A7 chips using its 28nm manufacturing process.

By the time Apple officially moves onto developing the A9 processor, TSMC would have likely migrated to 16nm  technology. At that point, it would be interesting to see whether Apple decides to stick with the Taiwanese chip company or revert back to its old Korean partner.