TSMC will likely get golden ticket as Apple’s main A9 chip supplier

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Gene testing, coming soon to an iPhone near you. Photo: Jim Merithew/Cult of Mac
The next iPhone's processor will be made in Taiwan. Photo: Jim Merithew/Cult of Mac
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The iPhone 6 has barely been on the market for three months but the iPhone 6S rumor mill is starting to heat up with a battle brewing between Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung to become the main supplier of the next-gen A9 processors.

Last month a Digitimes rumor claimed Samsung already locked up A9 chip production, but according to the Taipei Times, TSMC will continue to be the main supplier of Apple’s processors slated to the next generation of iPhones and iPads in 2015.

Researchers at the Market Intelligence and Consulting Institute (MIC) say that while the two companies have similar capabilities, TSMC is poised to win the order thanks to it’s better yields.

“The two companies’ technological capabilities are similar, so the key factor will be whose mass-production yield is better,” said MIC director Chris Hung. “However, as Apple tends to spread the risks, it is likely that the winning supplier of A9 will not take all the orders.”

Hung noted TSMC has better chances of becoming the main supplier because of its better yields. Samsung also produces 20-nanometer chips, but hasn’t been able to produce satisfactory yields yet. Apple has used Samsung to produce its A-series processors in the past, but started to ween its dependency on the South Korean company in 2013 by striking a deal with TSMC.

Other than Samsung, TSMC’s biggest competition in the global foundry business is starting to come from China. Beijiing is backing up the development of its semiconductor industry with new $19.29 billion fund, but Hung says it will be at least three to five years before your iPhone’s processor is made in China.

 

Source: Taipei Times

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