Taiwan's TSMC making chips for new iPhone: report

Mar 05, 2014

Taiwan Semiconductor Manufacturing Co has started producing chips for Apple's next iPhone, a report said Wednesday, as speculation swirls that the US firm could be offloading rival Samsung as a supplier.

The world's leading contract microchip maker last month started producing the A8 chip, which is tipped to power the expected iPhone 6, the Commercial Times reported.

The report, which cited supply chain sources, said TSMC had won most of the manufacturing orders for logic and power management integrated chips for the new handset.

The Commercial Times forecast the new phone, which will likely have a 4.7-inch screen, would hit the shops early in the third quarter.

TSMC declined to comment on the report, but its shares closed up 2.33 percent at Tw$110.0 Wednesday.

The news has fed rumours that Apple is reducing its reliance for parts on South Korean giant Samsung, its main competitor in the and a bitter rival with which it is contesting several copyright court battles globally.

Taipei-based website TechNews has claimed TSMC will now become the sole manufacturer of the A8 chips.

"This is another sign Apple has been shifting more orders away from Samsung," an analyst at a foreign company in Taipei told AFP on condition of anonimity.

"But how far Apple may push remains to be seen. It could be up to how much the Samsung-made parts and components could be replaced by those of other suppliers."

Last year the Wall Street Journal cited unidentified TSMC executives as saying Apple had struck a deal with the Taiwan firm as part of its move to diversify suppliers.

Samsung last month unveiled its new flagship Galaxy S5 smartphone armed with a fingerprint scanner and a built-in heart rate sensor, as it tries to cement its leadership of the multibillion-dollar smartphone market.

Samsung made about 30 percent of all smartphones sold globally last year, nearly twice the share of Apple.

Explore further: Samsung, Apple CEOs to discuss lawsuit settlement

add to favorites email to friend print save as pdf

Related Stories

Taiwan's TSMC gets orders from Apple

Jun 30, 2013

Apple has struck a deal with the world's biggest contract microchip maker in what analysts see as an attempt to reduce its reliance on arch-rival Samsung, a report said.

Apple, Samsung fail to settle before March trial

Feb 22, 2014

Apple Inc. and Samsung Electronics Co. Ltd. have failed to settle their latest patent dispute despite a daylong meeting between top Samsung executives and Apple CEO Tim Cook hosted by a mediator earlier this ...

Chipmaker TSMC gets tablet, smartphone boost in 1Q

Apr 18, 2013

Taiwan Semiconductor Manufacturing Co., the world's largest contract chip manufacturer, reported an 18 percent jump in first quarter profit as increased global sales of smartphones and tablet computers boosted demand for ...

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.