Apple reportedly will rely on TSMC not Samsung for A8 Chip

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Macrumors with TechNews Taiwan as its source reports that Apple (AAPL) may lean on Taiwan Semiconductor (TSM) for all of its production for the A8 and not Samsung (SSNLF).

Apple A8 processor likely to debut in 2014 in new iPhone

This builds on a July 2013 Wall Street Journal report that stated Taiwan Semiconductor who's other major clients include Advanced Micro Devices (AMD), Qualcomm (QCOM), and Texas Instruments (TXN), planned to start producing Apple chips. TSMC would start building A8 chips in early 2014 using 20-nanometer technology, which would make chips smaller and more energy efficient. The upcoming Apple A8 processor will be found in a new iPhone slated for release in early 2014

Samsung dropped for low yields in 20 nm manufacturing process

The reason Apple may lean on Taiwan Semiconductor for all of its production for the A8 is that Samsung (SSNLF) allegedly has been dropped for low yields in 20 nm manufacturing process for the A-series processor.

Reportedly will not change plans for A9

According to the same report, this move will not affect plans for Samsung and Taiwan Semiconductor to share productions for the A9. They expect Samsung to supply approximately 40% of Apple’s 14-nm A9 chip family in 2015 and that the production will begin initially with TSMC and its 16 nm process and shift to Samsung when the company can meet demand for 14nm.

Sources claimed Apple Taiwan Semiconductor Deal for 20nm,16nm, 10nm chips

Back in June 2013 sources told Digitimes, that a portion of production capacity could be upgraded to 16nm chips and that TSMC was scheduled to produce A9 and A9X processors starting by the end of third quarter 2014, which would likely be used in future iPads or other devices.

InvestCorrectly Staff
InvestCorrectly Staff

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