Apple supplier TSMC to set up $3B independent factory in mainland China

in General Discussion edited December 2015
Taiwan-based Apple supplier TSMC on Monday announced plans to launch a $3 billion chip production factory in Nanjing, China, forgoing the help of any local corporate partners.

The company will try to keep costs down by using equipment from its Taiwan facilities, while also taking advantage of Chinese subsidies, it said in an official statement. To address worries about technology being leaked to competitors -- both individuals and the Chinese government are regularly accused of stealing data -- the company noted that by the time the Nanjing complex is finished, operations in Taiwan will be producing chips a generation ahead, according to the New York Times.

Intellectual property is a major reason for TSMC wanting complete ownership of the factory, instead of going the partnership route of businesses like Qualcomm. Indeed the Taiwanese government has reportedly been concerned about semiconductor firms cooperating with China, even if that country's market is now too big to ignore. Taiwan's economy still hinges on the tech supply industry.

The new factory is contingent on the success of an application to Taiwan's Ministry of Economic Affairs.

Though it has other clients, TSMC has quickly risen to prominence in the Apple supply chain. It produced a majority of Apple's A8 processors, and churns out a smaller proportion of A9 chips, including the A9X in the iPad Pro. Rumors have suggested that TSMC will become the sole supplier of next-generation A-series processors, cutting Samsung out of the loop entirely. For years Samsung was the only manufacturer of A-series chips at a factory in Austin, Texas.


  • Reply 1 of 7
    melgrossmelgross Posts: 32,959member
    My only problem in moving from Samsung to TSMC is that from chips produced here in the USA, we're going to chips produced in Taiwan and China.
  • Reply 2 of 7
    melgross said:
    My only problem in moving from Samsung to TSMC is that from chips produced here in the USA, we're going to chips produced in Taiwan and China.
    True, however Samsung has labored hard to lose Apple's desire to cut them any slack.

    What always seemed odd to me was Apple's chip business was Texas Instrument's if they wanted it, but TI chose to go in a different direction with their chips and sold the plant to Samsung. 
  • Reply 3 of 7
    calicali Posts: 3,494member
    Might this mean they plan to take all of Apple's orders?
  • Reply 4 of 7
    lkrupplkrupp Posts: 9,012member
    Speaking of which, what ever happened to “chip-gate”? I don’t see any more frantic posts wanting to know how to demand the “better” chip in their iPhone 6S.
    edited December 2015
  • Reply 5 of 7
    ksecksec Posts: 1,567member
    I was thinking if even the SoC could be produced in China, Apple could have an iPhone that does not require import tax, significantly reduce the price of iPhone.

    But being one generation behind means this is not possible.

    P.S It could also be for iPhone 7c, but i am not sure if 4" is even popular in China.
    edited December 2015
  • Reply 6 of 7
    Since they’ve already set up what “#C” means (identical to #, but released a year after the initial launch), I don’t see how they could call it 7C. And calling it iPhone mini would imply the dumbest model is “Pro”, so that doesn’t work.


    iPhone. Available in 4”, 4.7”, and 5.5”.
    iPad. Available in 7.9”, 9.7”, and 12.9”.
    MacBook. Available in 12”, 13.3”, and 15.4”.
    iMac. Available in 21.5”, 27”, and 42”.

    Piece of cake. One name for each product, three sizes for each product.
    edited December 2015
  • Reply 7 of 7

    iMac. Available in 21.5”, 27”, and 42”.

    Finally, the 42" iMac is out, and just in time for Christmas!
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