TSMC to Secure Major Apple A10 Chip Orders in 2016

The world’s largest contract chip maker, Taiwan Semiconductor Manufacturing Co (TSMC), is being expected to secure more than half of all of Apple’s new mobile chip in 2016. This is due to their better production roadmap planning. They’re expecting that since the Taiwanese manufacturer has a clear roadmap for their capacity planning, they will gain a higher market share in the next year. The Apple A9 chips for the next iPhone in the fourth quarter of this year will be shared equally between TSMC and it’s rival Samsung.

Apple’s A9 chip is vital to TSMC’s business. Analyst say that the chip accounts for more than 20% of TSMC’s entire revenue for that year. This should help raise their declining revenue from them making the A8 chip for their current iPhone and 6 Plus models. Taking this deal will boost their revenue in to the double digits despite strong rivals like Samsung cutting in to their profits.

This period is currently slow from TSMC as there are chip makers such as Qualcomm, Texas instruments and Nvdia, they’re predicting a 7%-8% fall within their second-quarter sales. They’re citing these inventory adjustments in the IC industry as the reason for their current slow season.

Vice president of operations and product development at TSMC Y P Chin explained that the company would continue to develop advanced 16 nanometer and 20nm processes in order to increase their production capacity overall. Chin was also hopeful in saying that he is expecting these processes to double this year compared to last year.