Apple's 'A12' chip reportedly in production using 7nm process from TSMC
Chip producer TSMC may enjoy its highest profits this year for production of the next-generation "A12" processor, with a report claiming the manufacturer is ramping up volume production on its 7nm process lines in order to cope with the orders for the Apple-designed chip destined for 2018 iPhone models.
Taiwan Semiconductor Manufacturing Company (TSMC) is about to start fulfilling orders for A12 processors using its 7-nanometer production process, according to sources of DigiTimes. The 7-nanometer chip would be the first A-series design to use the process, shrinking the die size down from the 10-nanometer process used to produce the A11 Bionic, used in the iPhone 8 and iPhone X.
The act of shrinking the die offers a number of performance improvements and other benefits, all by increasing the density of the chip to fit more transistors into a smaller space. For consumers, this typically includes a reduction in power usage that can help increase battery life, lower heat production, and boost processing capacity.
Manufacturers, like TSMC, stand to benefit from being able to produce more chips per wafer, in theory reducing the cost of production on a per-chip basis.
TSMC is reportedly the sole producer of A12 chips, after apparently securing all of orders for the component from Apple earlier this year. Samsung was rumored to be competing with TSMC for A12 production, but it is thought TSMC's technological edge in 7-nanometer production helped it acquire all of the available orders over its chip-production rival.
The chip producer previously lowered its revenue growth forecast for 2018 from between 10 percent and 15 percent to just 10 percent, citing weaker smartphone demand in the second quarter and uncertainty in the cryptocurrency markets. In terms of revenue, the report source believes the firm will see 20 percent of its earnings in 2018 derived from 7nm processes, which could help the company post better-than-projected revenues and profit in the second half of the year.
While Apple is a major customer for TSMC, it is also expecting to enjoy high revenues from orders made by other firms. Chip production for Qualcomm will apparently take place later this year as well, which will help increase TSMC's revenue ratio for the smartphone segment to hit a high of 40 percent this year.
It is believed TSMC is also preparing to future-proof its production lines in anticipation of other chip-shrinking developments. TSMC is said to be preparing to start construction on a 5-nanometer facility this year, while a 3-nanometer factory may begin construction in 2020.
Taiwan Semiconductor Manufacturing Company (TSMC) is about to start fulfilling orders for A12 processors using its 7-nanometer production process, according to sources of DigiTimes. The 7-nanometer chip would be the first A-series design to use the process, shrinking the die size down from the 10-nanometer process used to produce the A11 Bionic, used in the iPhone 8 and iPhone X.
The act of shrinking the die offers a number of performance improvements and other benefits, all by increasing the density of the chip to fit more transistors into a smaller space. For consumers, this typically includes a reduction in power usage that can help increase battery life, lower heat production, and boost processing capacity.
Manufacturers, like TSMC, stand to benefit from being able to produce more chips per wafer, in theory reducing the cost of production on a per-chip basis.
TSMC is reportedly the sole producer of A12 chips, after apparently securing all of orders for the component from Apple earlier this year. Samsung was rumored to be competing with TSMC for A12 production, but it is thought TSMC's technological edge in 7-nanometer production helped it acquire all of the available orders over its chip-production rival.
The chip producer previously lowered its revenue growth forecast for 2018 from between 10 percent and 15 percent to just 10 percent, citing weaker smartphone demand in the second quarter and uncertainty in the cryptocurrency markets. In terms of revenue, the report source believes the firm will see 20 percent of its earnings in 2018 derived from 7nm processes, which could help the company post better-than-projected revenues and profit in the second half of the year.
While Apple is a major customer for TSMC, it is also expecting to enjoy high revenues from orders made by other firms. Chip production for Qualcomm will apparently take place later this year as well, which will help increase TSMC's revenue ratio for the smartphone segment to hit a high of 40 percent this year.
It is believed TSMC is also preparing to future-proof its production lines in anticipation of other chip-shrinking developments. TSMC is said to be preparing to start construction on a 5-nanometer facility this year, while a 3-nanometer factory may begin construction in 2020.
Comments
A virtuous cycle of iPhone marketing and development.
https://appleinsider.com/articles/18/04/19/apple-shares-drop-on-iphone-chipmaker-tsmc-forecasting-1b-less-in-revenue
Both can be true.
When I see a headline for a news article (and I use that term loosely) that says, Apple stock may fall on 'materially' weaker iPhone sales, but then it is time to buy" my statement about manipulation is correct. Hammer a stock with potentially false or degrading information so it goes down, then buy and watch it rebound. Classic case of stock manipulation.
But only one will tell the more truthful in a larger-picture context. The manipulation of AAPL is grotesque at times...
And that is a major advantage Apple has. Estimates of chip cost from Microprocessor Reports is that Apple new chips each year cost between $34-38, whereas the top chips for Android cost between $24-28. That’s a whopping difference..
Ah, well... the problem is that none of these processes are truly what they are called anymore. Intel’s is the closest. These other manufacturers are hedging their numbers. The ability to lay down a 7nm line doesn’t mean that transistor density will equal a 7nm process. It’s more likely that it’s closer to a real 10-12nm process in density.
but last year, estimated for Apple’s SoC density was well over what the indistry was doing, including that of other TSMC customers. Apple has been spending a whale of a lot of,money in recent years in basic chip technology. It’s possible they’ve got some proprietary tech used only for their own chips.
It's hard for me to believe following this space most of my life, but we're upon the convergence with Intel foundries. Even though the naming is still whack, 7nm brings them in line with Intel 10nm. By 2020 it should be even more even, which bodes well for an ARM Apple in house Macbook switch...
Perhaps the first mobile SoC family. Both and and Intel have announced they will have some solutions later this year.
Korean source - http://www.sedaily.com/NewsView/1RY509L5TV
English source - https://www.gizmochina.com/2018/04/08/samsung-completes-7nm-process-development-6-months-early-may-be-used-on-snapdragon-855/
The report also indicated that Qualcomm's Snapdragon 855 would be using Samsung's 7nm process with an early 2019 release.