This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple's A-Series Chip Orders To Make Up 10% Of TSMC's 2014 Revenue

Next month, Taiwanese chip maker Taiwan Semiconductor Manufacturing Company (TSM - Get Report) is set to gradually increase production for its 20-nanometer process. A new report from Taipei Times mentioned that Mark Liu chief executive officer for TSMC claimed this would be the most significant ramp-up in years.

Apple has a large order for TSMC

What’s more is that analysts predict that this ramp-up in orders can be attributed to a large order from Apple Inc. (AAPL - Get Report). Credit Suisse analyst Randy Abrams believes Apple Inc. (AAPL - Get Report) will make up for 6.5% of Taiwan Semiconductor Manufacturing Company (TSM - Get Report)’s revenue next year. Daiwa Capital Markets Eric Chen thinks that number will be higher at 10%.

Rumors of Apple Inc. (AAPL - Get Report) and Taiwan Semiconductor Manufacturing Company (TSM - Get Report) joining forces really started circulating in late 2012. Taiwan Economic News explained, “Citigroup Global Markets’ market research fellow, J.T. Hsu, pointed out that Apple Inc. (AAPL - Get Report) began verifying TSMC’s 20nm process in August this year and may begin risk production in November with the process. Volume production is expected to start in the fourth quarter of 2013, raising the possibility that TSMC will hike capital expenditure to US$11-12 billion in 2013 and 2014. Hsu estimated Apple Inc. (AAPL - Get Report) to design quad-core processors into iPad, iTV and even Macbook. iPhones will be still powered by duo-core processors to highlight its low power consumption merit.”

Apple looks to replace Samsung

Hsu added that Apple Inc. (AAPL - Get Report) first started developing quad-core processors three years ago after they acquired chip maker Intrincity. Just this past September, the Wall Street Journal signed an agreement with TSMC so they would make their chips instead of Samsung Electronics Co., Ltd. (BC94) (00593)0. Apple Insider elaborated, “According to the source, the deal was years in the making, as TSMC was unable to manufacture silicon up to the speed and power standards required by Apple Inc. (AAPL - Get Report). With the technical difficulties solved, the Taiwanese firm will start chip production in 2014. Discussions of a partnership date back to 2010, the Journal says, but in 2011 TSMC was unwilling to accept an offer from Apple Inc. (AAPL - Get Report) to either invest heavily in the firm, or reach an agreement that would dedicate a certain amount of fab space specifically for the production A-series chips.”

-By Anna Peel

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
TSM $23.15 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs