TSMC Samsung's exclusive Apple A10 order

South Korean media reported that TSMC beat Samsung and will exclusively OEM the A10 processor on Apple's next-generation iPhone with a 10nm process. This means that Apple's existing supply chain strategy will undergo a major change, and Apple will further implement "going to Samsung", and TSMC will become a big winner.

TSMC did not comment on the status of single customers and orders yesterday (11). The legal person pointed out that the South Korean media has always supported Samsung. In the past, it was "explosive" that Samsung could not renew Apple orders. If it is true, it will be the first time that TSMC has taken orders for Apple processors, which will help TSMC increase its performance by two places this year. The number of goals is moving more steadily.

The equipment industry came out, Apple's OEM strategy turned, Samsung Semiconductor business was hit hard, decided to suspend the expansion of the logic chip factory, the equipment originally ordered for semiconductor equipment has been urgently stopped. In terms of TSMC, capital expenditures this year have been increased to $9 billion, a large part of which is in response to orders for the Apple A10 OEM.

The competition between Samsung and Apple has always been the focus of the industry. Although Samsung took the lead in producing A9 processors for Apple's OEM last year, it only made a short lead in the time course. After the 16th TSMC in the third quarter of last year officially produced the A9 processing for Apple's OEM, TSMC foundry. The chip was led by Samsung after the actual measurement, which made TSMC famous in the battle, which made Samsung's 14nm and Apple's aura of cooperation continue to decline.

Reuters quoted the South Korean Electronic Times as saying that TSMC beat Samsung, a long-term partner of Apple, to win an exclusive order for the manufacture of Apple's new processor. TSMC will use 10 nanometer process technology to produce a new processor for Apple that may be named A10.

TSMC and Samsung are currently A9 processor OEMs for the iPhone 6s and 6s Plus. It is reported that 70% of the A9 is manufactured by Samsung, and the rest is acquired by TSMC. Samsung’s share price in Seoul fell 2.9% to 1.13 million won on the 11th after news of Apple’s next-generation A10 processor foundry was sent out by TSMC and Samsung no longer had Apple’s aura. US stocks tumbled in early trading yesterday, and TSMC's ADR fell only about 0.4%.

Industry insiders pointed out that TSMC has turned from a minor OEM of the original Apple processor to a major or even exclusive foundry, revealing that TSMC's integrated fan-out package (InFO) technology is superior to Samsung. InFO technology stacks embedded wafers on each other and mounts them directly on the board, reducing thickness and weight.


TSMC and Samsung compare one map / economic daily