TSMC To Produce iPhone 6 Chips

Apple has officially come to the agreement with Taiwanese manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) to supply the new generation of chips for iPhone, iPad and other iOS-based devices. It is a well-known fact that Cupertino-based corporation has been in a long-term cooperation with Samsung, but has decided to change the partner because of competition with the South Korean giant, and due to the numerous “patent wars” and corresponding lawsuits.

Taiwan Semiconductor Manufacturing Company was founded in 1987, becoming one of the leading semiconductor manufacturers in the world. Among its clients are such large companies as AMD, NVIDIA, Qualcomm, Broadcom and Intel.

TSMC produces “system on a chip” for 20 and 28-nanometer process technology. They are smaller and more energy efficient than a 32-nanometer A5 and A6 chips from Samsung, used in Apple’s contemporary gadgets.

Apple had intentions to sign a deal with TMSC in 2010, but the agreement was postponed because Apple’s representatives remained dissatisfied with performance and power consumption of TSMC processors. Another condition insisted by Apple was the allocation of the complete manufacturing capacities exclusively for iPhone and iPad chips, which TSMC did not want to do.

Today, according to the latest information, TSMC has started the manufacturing process of a new generation of A-chips. Most likely, the processors will be labeled A8, and will be installed in the upcoming iPhone 6, as well as in the updated version of iPad Air. Presumably, both devices will be shown in the autumn of 2014.

According to the insider sources, Samsung has not managed to establish the required mass production of 20-nanometer chips of A-series, while Taiwan Semiconductor Manufacturing Company was able to meet the demands of Apple. The sources also note that Apple will request TSMC to start manufacturing of the brand new A9 chips (based on 16-nanometer crystal) in 2015. Later, when Samsung is able to start a mass production of 14-nanometer chips in a sufficient (for Apple) amount, Apple will restart its cooperation with the South Korean corporation.

However, according to the KGI Securities analyst, Ming Chi Kuo, new iPad Mini with Retina display is unlikely to undergo dramatic changes this year. He also expressed the opinion that the “professional” model of iPad has been postponed to the next year (i.e. 2015). As for the rumors about the new iPhone 6, the latest information that has appeared in the web was related to some “spy” photos of the future gadget.