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  • Apple Reportedly Makes a Last Minute Decision to go with TSMC for "A9" Chip Orders

    Apple has apparently made a last minute call in solidifying its supply chain for the next-gen iPhone, opting to award roughly a third of “A9” chip orders to Taiwan Semiconductor Manufacturing Co. after facing poor yield rates from chipmaker, GlobalFoundries. The well-connected analyst, Ming-Chi Kuo of KGI Securities issued a note to investors recently revealing that Apple has apparently made what he called a “last minute decision to recruit TSMC.”

    To be more specific, the “A9” chip yield rate was said to be at about 30% for GlobalFoundries. This is well below what Kuo said is a mass-production “basic requirement” of at least 50%. The analyst said the following regarding the matter:

    Recruiting TSMC reduces supply uncertainties for Apple.
    According to Kuo, another factor in the decision was concerns from Apple that Samsung’s chipmaking business may not be able to supply enough of its 14-nanometer design. This news is because of initial sales of the Galaxy S6 and S6 Edge being greater than expected, a move which would possibly pull 14-nanometer orders away from the Cupertino California company. Last but not least, Kuo indicated that TSMC’s competing 16-nanometer FinFET Turbo design has exceeded Apple’s expectations when it comes to both yield rate and performance.

    According to industry analyst Timothy Arcuri from Cowen and Company, strong yields and attractive pricing led him to believe that TSMC had secured a larger portion of Apple’s A9 order after a recent trip to Asia. The news from Kuo seems to align with the previous news from Arcuri, giving further credit to the information.

    Apple’s upcoming 2015 iPhone update is widely expected to sport a next-gen processor based on what will seemingly be a smaller and more efficient design. We’ll have to wait and see what specs the next-gen iPhone will tout along with who is behind helping Apple manufacture the final product soon enough.

    Source: KGI Securities via AppleInsider
    This article was originally published in forum thread: Apple Reportedly Makes a Last Minute Decision to go with TSMC for "A9" Chip Orders started by Akshay Masand View original post
    Comments 5 Comments
    1. SpiderManAPV's Avatar
      SpiderManAPV -
      That's gotta hurt Samsung's wallet.
    1. sknet's Avatar
      sknet -
      so not going with samsung no more for iphone6s?
    1. CZroe's Avatar
      CZroe -
      Quote Originally Posted by SpidermanAPV View Post
      That's gotta hurt Samsung's wallet.
      Moreso, Global Foundry's
    1. NewD's Avatar
      NewD -
      Quote Originally Posted by sknet View Post
      so not going with samsung no more for iphone6s?
      ?? There WILL be a 6s and 6s+... Just with a different A9 chip manufacturer.
    1. weazle23's Avatar
      weazle23 -
      so 6s+ probably have 14 nanometer samsung chips 6s and 6c have 16 nanometer tsmc chips.