As Taiwanese chipmaker TSMC prepares to ramp up production on its 20-nanometer process fabrication in January, analysts believe the company is poised to take a large bite out of rival Samsung’s supply contract for Apple’s A-series processors. According to a report from Taipei Times, CEO Mark Liu called the 20-nanometer rollout “the most critical ramp-up TSMC has carried out in years.” Liu went on to predict a double-digit revenue bump from the new process, a prediction that could be due in part to a pending large-scale order from Apple.

Randy Abrams of Credit Suisse believes that Apple will account for 6.5% of TSMC’s revenue in 2014, while fellow fab watcher Eric Chen of Daiwa Capital Markets puts the number at 10%. TSMC ended up booking $5.53 billion in the third quarter of 2013, which was a new record for the company. In addition to the 20-nanometer ramp-up, TSMC is in the middle of rolling out a new 16-nanometer fab, which Liu says could start mass production as soon as next year.

News and rumors of Apple working with TSMC began flying around last October, as tensions between Apple and Samsung rose on the back of the companies’ large worldwide legal battle over copyright infringement. TSMC was first linked to the A6X, then the A7 and most recently the so-called “A8,” which is believed to be the next in Apple’s A-series processor line. This past June, The Wall Street Journal reported that a deal between Apple and TSMC had been signed and that production would end up shifting away from Samsung beginning in 2014.

Source: Taipei Times, The Wall Street Journal via AppleInsider