Apple said to sign foundry agreement with TSMC for A6, A7 processors

Posted:
in Future Apple Hardware edited January 2014
Apple is said to have finalized an agreement with Taiwan Semiconductor Manufacturing Co. that could see the foundry produce Apple's next two generations of processors.



Taiwanese industry publication DigiTimes reported on Friday that TSMC will utilize its 28nm and 20nm process technologies, presumably for the so-called A6 and A7 chips, as part of the agreement.



"TSMC is believed to have quietly secured Apple's contract, and even succeeded in extending the deal to cover the manufacture for the A6's successor," the report noted sources as saying. Of course, neither the A6 nor its successor have been officially announced by Apple, but sources within component suppliers have suggested that the A6 will power Apple's sixth-generation iPhone and third-generation iPad when they are expected to arrive next year.



Insiders also alleged that the terms of TSMC's contract were relatively favorable and would have little impact on the company's gross margin, which stood at 46 percent as of the second quarter of 2011.



Though TSMC had originally been believed to take over production of the current-generation A5 chip from Samsung, analysts have since suggested that TSMC will not begin fulfilling Apple orders until 2012.







In July, TSMC was said to have begun trial production of the A6 processor, with Apple wanting to see whether the foundry had an acceptable yield rate. A subsequent report claimed production design for the chip will be finalized in the first quarter of 2012 and publicly unveiled no earlier than the second quarter of next year.



Friday's report added that Apple and TSMC have not yet talked about backend manufacturing such as packaging and testing. Sources speculated that Apple would split orders between TSMC and a dedicated packaging and testing house because the foundry has limited capacity for such services. Siliconware Precision Industries (SPIL) and Amkor Technology were named as being in the running for orders.



In August, the publication reported that Apple met with SPIL to discuss "opportunities for cooperation" after seeing the company's assembly line. "SPIL stands a chance of becoming the first packaging and testing service provider designated by Apple," sources said.



Earlier this week, TSMC said it had received- a batch of "rush orders" that could lift the company's earnings past guidance. One analysis suggested that Broadcom had placed orders for iPhone 5 components as production of the next-generation handset ramps up.

Comments

  • Reply 1 of 20
    hill60hill60 Posts: 6,989member
    Samsung should start getting a sinking feeling in the pit of their collective stomach about now.
  • Reply 2 of 20
    Quote:
    Originally Posted by hill60 View Post


    Samsung should start getting a sinking feeling in the pit of their collective stomach about now.



    Don't worry. Someone will come on here and downplay the nearly $10 Billion contract they'll see drop considerably, if not all together by next year with Apple, as nothing but a drop in the bucket.
  • Reply 3 of 20
    galbigalbi Posts: 968member
    Unlike Apple, Samsung doesn't put all its eggs in one basket.
  • Reply 4 of 20
    Quote:
    Originally Posted by Galbi View Post


    Unlike Apple, Samsung doesn't put all its eggs in one basket.



    Even if Samsung has multiple baskets their shareholders won't be happy about them losing the biggest one. Losing Apple's business will be a crazy huge hit to that division of Samsung and a significant loss of income to the company as a whole.
  • Reply 5 of 20
    Quote:
    Originally Posted by Galbi View Post


    Unlike Apple, Samsung doesn't put all its eggs in one basket.



    People act like Samsung is so much bigger than Apple.



    Apple may not make as much revenue than Samsung but Apple makes more profit.



    To me that make Apple bigger than Samsung.
  • Reply 6 of 20
    Quote:
    Originally Posted by studentx View Post


    People act like Samsung is so much bigger than Apple.



    Apple may not make as much revenue than Samsung but Apple makes more profit.



    To me that make Apple bigger than Samsung.





    It is SO clever how you redefine that word! Kudos!
  • Reply 7 of 20
    It is often worrying that Apple seems to pre-empt the parting of the ways.

    Whilst Apple have now gone from using a Samsung design to their own, the difficulty will be to keep up with competition from the numerous SOC variations.



    I'd wager on Apple concentrating on the casing where their designs are certainly unique.
  • Reply 8 of 20
    galbigalbi Posts: 968member
    Quote:
    Originally Posted by GregInPrague View Post


    Even if Samsung has multiple baskets their shareholders won't be happy about them losing the biggest one. Losing Apple's business will be a crazy huge hit to that division of Samsung and a significant loss of income to the company as a whole.



    Your thinking is still within the boundaries of Apple.



    Samsung has multiple customers.





    Quote:
    Originally Posted by studentx View Post


    People act like Samsung is so much bigger than Apple.



    Apple may not make as much revenue than Samsung but Apple makes more profit.



    To me that make Apple bigger than Samsung.





    Revenue



    # of employees



    Fair value of assets



    etc.



    Samsung is much larger than Apple and has multiple revenue streams, not just CONSUMER electronics, of which Apple has all of its assets in.
  • Reply 9 of 20
    mr. memr. me Posts: 3,219member
    Quote:
    Originally Posted by Galbi View Post


    Your thinking is still within the boundaries of Apple.



    Samsung has multiple customers.



    ...



    Yes, and IBM would agree with you 100%--before Apple dumped it.
  • Reply 10 of 20
    I would rather be the one sitting on nearly $100 billion in cash. Which one is that?



    Quote:
    Originally Posted by Galbi View Post


    Unlike Apple, Samsung doesn't put all its eggs in one basket.



  • Reply 11 of 20
    hjbhjb Posts: 278member
    Quote:
    Originally Posted by TenoBell View Post


    I would rather be the one sitting on nearly $100 billion in cash. Which one is that?



    I am sure that Samsung has more cash than Apple as they many businesses not publicly owned (ie. Financial details not disclosed). Some says Samsung has 3 times of Apple revenue.
  • Reply 12 of 20
    bigpicsbigpics Posts: 1,355member
    Quote:
    Originally Posted by TenoBell View Post


    I would rather be the one sitting on nearly $100 billion in cash. Which one is that?



    Quote:
    Originally Posted by hjb View Post


    I am sure that Samsung has more cash than Apple as they many businesses not publicly owned (ie. Financial details not disclosed). Some says Samsung has 3 times of Apple revenue.



    Apple's the world press and markets and marketcap and websites following it darling, but I wouldn't underrate Samsung as an entity for a minute in the long run.



    Just as America shouldn't underrate the rise of Asia (all of Asia - China, Japan, Korea, SE Asia, India, Malaysia, Indonesia, Singapore...... ...in some parts of the world they still work hard and "believe" in math.



    (Don't miss the linked vid..... ...really)
  • Reply 13 of 20
    galbigalbi Posts: 968member
    Quote:
    Originally Posted by TenoBell View Post


    I would rather be the one sitting on nearly $100 billion in cash. Which one is that?



    What good is all that money if you are not using it? Its the equivalent of stuffing your mattress with money.



    You people boast about Samsung's shareholders not being happy due to low profit margins.



    What about Apple's shareholders? How about giving them some dividend for crying out loud?



    Or better yet, stop feeding the commie Chinese and start building an American manufacturing plant!



    Unpatriotic Apple. http://forums.appleinsider.com/showthread.php?t=131860
  • Reply 14 of 20
    mr. memr. me Posts: 3,219member
    Quote:
    Originally Posted by Galbi View Post


    ...



    What about Apple's shareholders? How about giving them some dividend for crying out loud?



    Or better yet, stop feeding the commie Chinese and start building an American manufacturing plant!



    Unpatriotic Apple. http://forums.appleinsider.com/showthread.php?t=131860



    I love it how certain people love to instruct Apple on how to throw away its money. Notice you don't see a lot of Apple shareholders clamoring for dividends. Something about having every share priced at $400.50 at the close of the market today, 16 September 2011.
  • Reply 15 of 20
    tbelltbell Posts: 3,146member
    That is true. That probably is why Samsung has to copy the leading competitor in any market it enters. It probably is also why Samsung's LCD business is hurting. I am sure Samsung would prefer to keep Apple's billions then give it away.



    This battle with Apple 1) is unnecessary, and 2) will be expensive for all involved. It is unnecessary because Samsung could make Android phones without blatantly copying Apple's hardware. Others are doing it.



    Quote:
    Originally Posted by Galbi View Post


    Unlike Apple, Samsung doesn't put all its eggs in one basket.



  • Reply 16 of 20
    tbelltbell Posts: 3,146member
    Actually, quite a few shareholders are clamoring for dividends. Just a few days ago Morgan Stanley came out claiming Apple should offer such dividends. The only reason you haven't seen lawsuits is because the stock is going up.



    Setting all that aside, not sure what any of that has to do with Apple manufacturing in the US. I'd like to see it. Unfortunately, our elected leaders have decided to force American workers to compete with slave labor by awarding so called Us companies to ship American ingenuity and wealth to Countries that are opposed to our way of life. Until our elected officials do away with not so free Trade Agreements like NAFTA, I am not sure if Apple could be competitive building in the US (it is hard to compete with what essentially is a free work force). Americans don't even know how to set up factories anymore.



    Quote:
    Originally Posted by Mr. Me View Post


    I love it how certain people love to instruct Apple on how to throw away its money. Notice you don't see a lot of Apple shareholders clamoring for dividends. Something about having every share priced at $400.50 at the close of the market today, 16 September 2011.



  • Reply 17 of 20
    tbelltbell Posts: 3,146member
    Not really a fair comparison, as Samsung is really a conglomerate of separate businesses united under one brand. It has many subsidiaries whose income is often times attributed to the Samsung Group, and often times hidden all together.



    This is similar to Apple's relationship with File Maker, but on a much larger scale. Apple owns File Maker outright, but File Maker is a separate company. It operates independently of Apple.





    Quote:
    Originally Posted by Galbi View Post


    Samsung is much larger than Apple and has multiple revenue streams, not just CONSUMER electronics, of which Apple has all of its assets in.



  • Reply 18 of 20
    hmmhmm Posts: 3,405member
    The issues with chinese and other Asian companies and their manufacturing are not in any way unique to Apple. It's an industry wide problem and parallels several other industries with similar issues. A ton of things brought this on including the need to compete with foreign companies, but it's completely stupid that any company can circumvent both wage and environmental laws just by outsourcing. This has been the case with manufacturers of clothing, computer parts, cookware, etc. Apple is not really better or worse in the matter than the next guy. It's just easy to take aim at them because they're on top right now.
  • Reply 19 of 20
    wizard69wizard69 Posts: 12,693member
    NAFTA has nothing to do with the slave labor, as you call, it in Asia. Rather NAFTA has been a net win for the US. Unless you have issues with Canada and Mexico I don't see a correlation with the states in Asia.



    Now don't get me wrong I'm not at all pleased with the rush to China and putting our future in the hands of a foreign power so disgusting as the Chinese government. I just object to the tying of treaties that have nothing to do with that. Sadly no body in congress seems to give a damn and frankly we are given no real choices at voting time.



    Quote:
    Originally Posted by TBell View Post


    Actually, quite a few shareholders are clamoring for dividends. Just a few days ago Morgan Stanley came out claiming Apple should offer such dividends. The only reason you haven't seen lawsuits is because the stock is going up.



    Setting all that aside, not sure what any of that has to do with Apple manufacturing in the US. I'd like to see it. Unfortunately, our elected leaders have decided to force American workers to compete with slave labor by awarding so called Us companies to ship American ingenuity and wealth to Countries that are opposed to our way of life. Until our elected officials do away with not so free Trade Agreements like NAFTA, I am not sure if Apple could be competitive building in the US (it is hard to compete with what essentially is a free work force). Americans don't even know how to set up factories anymore.



    Frankly you don't know what you are talking about. The work forces aren't free. The incentive to move off shore involves more than just wages. We need to remove some of those incentives to level the playing field.
  • Reply 20 of 20
    hmmhmm Posts: 3,405member
    Quote:
    Originally Posted by wizard69 View Post


    Sadly no body in congress seems to give a damn and frankly we are given no real choices at voting time.



    .



    That's been a huge point of frustration for me for a long time. That and when people always reference it to China specifically as if they are the sole source of US problems.
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