Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s top contract chipmaker, could continue to be the main supplier of Apple Inc’s A9 processor used in its new-
generation iPhones and iPads next year, a market researcher said yesterday.
The key for TSMC to win over its main competitor, Samsung Electronics Co, in vying for Apple’s orders is its production yield, the Market Intelligence and Consulting Institute (MIC, 產業情報研究所) told a press conference on technology industry trends for next year.
“The two companies’ technological capabilities are similar, so the key factor will be whose mass-production yield is better,” MIC director Chris Hung (洪春暉) told reporters on the sidelines of the event.
Hung added that the chances of TSMC remaining the main supplier are higher because of its better yields.
Samsung also produces advanced 20-nanometer (nm) chips, but its yield is not satisfactory, Hung said.
“However, as Apple tends to spread the risks, it is likely that the winning supplier of A9 will not take all the orders,” Hung said.
The MIC holds a positive view of Taiwan’s semiconductor industry next year, despite China’s determination to develop its chip industry, Hung said.
“Although Beijing is to back up the development of its semiconductor industry with an industry-supporting fund of 120 billion yuan [US$19.29 billion], Taiwan still has its technological advantages in terms of design, manufacturing and packaging in the global market,” Hung said.
He said it would take three to five years for China to become a real threat to the Taiwanese industry, but some Taiwanese companies have started to take proactive measures against the rising competition.
Handset chip supplier MediaTek Inc’s (聯發科) 300 million yuan investment in a Chinese government fund and United Microelectronics Corp’s (UMC, 聯電) US$1.35 billion planned investment in a new foundry in Xiamen demonstrates the two companies’ determination to deepen cooperation with China and to benefit from the rapid growth in the world’s largest semiconductor market, he said.
Hung said he expects mergers and acquisitions among Chinese semiconductor companies in the next two or three years, adding that Chinese companies might integrate their upstream and downstream suppliers via strategic cooperation with international companies.
“International semiconductor companies Intel Corp and Samsung both attempted to secure their positions in the Chinese market through investments in chips plants in the country,” Hung said.
Intel has two chips plants in Chengdu (成都) and Dalian (大連) cities, and Samsung established its first semiconductor fabrication plan in Xian (西安), he added.
Hung said the global companies’ moves in China would push Taiwanese companies to secure the positions in the Chinese market as soon as possible.
‘SHORT-TERM ECONOMIC PAIN’: A military takeover would only temporarily weigh on wafer production on both sides of the Taiwan Strait, IC Insights said Taiwan has more chip manufacturing capacity than any other economy in the world, US-based market information advisory firm IC Insights said in a research paper last week, cautioning that the nation’s strength could prompt China to attempt to take over Taiwan. Taiwan commanded 21.4 percent of global installed IC capacity, ahead of South Korea’s 20.4 percent, Japan’s 15.8 percent and China’s 15.3 percent, North America’s 12.6 percent and Europe’s 5.7 percent, IC Insights said. Taiwan is one of two countries that uses 10-nanometer technology or better to produce wafers, holding 62.8 percent of global capacity, with South Korea holding the remaining 37.2
SELF-SUFFICIENCY: Alibaba is one of a number of Chinese firms that has answered Beijing’s call to invest in the development of cutting-edge technologies Alibaba Group Holding Ltd (阿里巴巴) yesterday unveiled a new server chip that is based on advanced 5-nanometer technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency. The Chinese tech giant’s newest chip is based on micro-architecture provided by the SoftBank Group Corp-owned Arm Ltd, it said. Alibaba, which is holding its annual cloud summit in Hangzhou, China, said that the chip is to be used in its own data centers in the “near future” and would not, for the time being, be sold commercially. “Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better
AGGRESSIVE STEP: With the new processors, Apple is aiming at the high-end chips Intel has provided for the MacBook Pro and other top-end Macs for about 15 years Apple Inc on Monday took the most aggressive step yet to strip Intel Corp chips from its computers, announcing more powerful homegrown Mac processors alongside a total revamp of its MacBook Pro laptop computers. The company showcased the chips at an event called “Unleashed,” which also included its latest audio products. The new components, called the M1 Pro and M1 Max chips, are 70 percent faster than its M1 predecessors, Apple said. It also unveiled a redesigned MacBook Pro, adding larger screens, MagSafe charging and better resolution. With the new processors and devices, Apple is aiming squarely at the high-end chips that Intel has
PRICE SPREAD: Oil trading under the Brent futures contract is giving the US a hefty edge in pricing, increasing the rush to secure cheap fuel as winter approaches Asian demand for US oil is rising as the energy crisis boosts prices for other crudes that are priced against the global Brent futures contract. China and other Asian buyers have been snapping up supertankers of US oil for delivery next month and seeking more for December, some traders have said. Most buyers are seeking US grades that had recently slumped to the lowest levels in more than a year, with an added incentive after Beijing awarded millions of tonnes of crude oil import quotas. A wide spread between Brent and West Texas Intermediate (WTI) oil futures is accommodating higher US crude
RSS