TSMC to remain major supplier of Apple’s A9 chip

At this point, only Apple can tell for sure that which company is going to get majority of orders for its components used in iPhone, but rumors mill is working in full swing. Contrary to the previous reports, Taipei Times reports that Taiwan Semiconductor Manufacturing Company (TSMC) will be the one receiving majority of orders from Apple and will remain the major Apple supplier for the upcoming 14-nanometre A9 processor.

When it comes to the production of Apple’s A9 processor, that’ll be used in Apple’s upcoming iPhones and iPads, the main contenders for these orders are Samsung and TSMC. There are numerous reports suggesting one company securing bulk Apple orders over the other and vice versa.
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Apple A8 and A8X processors, that Apple is currently using in iPhone 6 and iPhone 6 Plus, are being manufactured by Samsung and TSMC. However, TSMC has the majority of production orders – about 70 percent. Taipei Times says that just like the last year, due to better yields and leaner production, TSMC will retain the majority of orders over the South-Korean Giant Samsung.

The two companies’ technological capabilities are similar, so the key factor will be whose mass-production yield is better,” MIC director Chris Hung (???) told reporters on the sidelines of the event. Hung added that the chances of TSMC remaining the main supplier are higher because of its better yields.

Back in July, KGI Securities analyst Michael Liu had said that Samsung will be receiving majority of orders from Appl for the production of 14nm smartphone chips. In November, another report was surfaced suggesting that the battle between Samsung and TSMC was still raging, but Samsung could be the one netting the bulk orders from the fruit company.

It’s still too early for iPhone 6s and iPhone 6s Plus rumors, but it’s very likely that a faster A9 chip will make its way into a faster iPhone 6s and 6s Plus in Fall 2015.

Taipei Times reports that Samsung could still be getting minority A9 chip production orders and will not be completely pushed out of Apple’s supply chain. Apple is known for managing its supply chain very well and by diversifying the suppliers, it can avoid major manufacturing troubles resulting in delayed product launch.

In the end, it’s all about getting the bulk orders, none of the two is being kicked out of Apple’s supply chain.
[Taipei Times]

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