Tue, Dec 27, 2016 - Page 12 News List

New 10nm process to generate revenue in next year: TSMC

Staff writer, with CNA

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said that the company expects its advanced 10 nanometer (nm) process to start generating sales in the first quarter of next year.

The 10 nanometer process began commercial production in the fourth quarter of this year as scheduled, TSMC said.

The chipmaker made the statement after media reports that TSMC and South Korean rival Samsung Electronics Co have had lower-than-expected yields on their 10 nanometer process technology.

Although TSMC did not directly respond to the reports, it indicated that it expects the technology to start generating revenue from next month.

The reports did not have an adverse effect on TSMC shares on the Taiwan Stock Exchange yesterday. The stock closed at NT$179.5, up 0.56 percent, as investors looked to Wall Street where TSMC’s American depositary receipts increased 1.08 percent on Friday.

The gains posted by TSMC drove a rebound by the main board yesterday, with the weighted index ending at 9,110.54 points, up 0.35 percent.

According to the Taipei-based Digitimes, TSMC has received orders from US-based Apple Inc, China-based integrated circuit designer HiSilicon Technologies Co (海思) and Taiwanese IC designer MediaTek Inc (聯發科).

The report cited industry sources as saying that the yield rate for the 10 nanometer process failed to meet expectations.

The report has been cited by international high-tech Web sites such as Electronics Weekly, the 9 to 5 Mac and Mobile & Apps.

The lower-than-expected yields could delay production of Apple Inc’s next generation iPad, which is expected to make its debut next year using the A10 X processor provided by the Taiwanese chipmaker, the Digitimes said.

KGI Securities analyst Kuo Ming-chi (郭明錤), who has in the past accurately predicted Apple’s moves, said in a research note that TSMC could serve as the sole supplier of the A10X processor for production of Apple’s 12.9-inch iPad Pro 2 and 10.5-inch iPad Pro.

Kuo added that TSMC is expected to become the sole supplier of the A11 processor for Apple’s next-generation iPhones, which are to be launched next year.

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