Apple Seals Deal with TSMC to Manufacture Chips from 2014

Apple Seals Deal with TSMC to Manufacture Chips from 2014

TSMC (Taiwan Semiconductor Manufacturing Co.) has won Apple over as a chip client.

It's not exactly an expected move by Apple, as Samsung has proven to be a tough competitor in the smartphone market, however, this switch won't be taking place too soon, as for the next year at least, Samsung will still be distributing chips to Apple.

The new supply deal for Apple's iPad and iPhone chips will boost TSMC as it employs a new, extravagant manufacturing technology. Presently, TSMC is the world's largest contract manufacturer of chips by revenue. Having said that, it's impausible that Apple will transfer all chip manufacturing orders to TSMC, as Apple would prefer to diversify its supply base to decrease risk.

Source: Wall Street Journal

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