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| August 29, 2012
Apple Attempts To Purchase Exclusive Access To TSMC Chip Production For iDevices
According to a new report from Bloomberg, both Apple and Qualcomm recently attempted to purchase exclusive access to chip supplies from Taiwan Semiconductor Manufacturing Company (TSMC), but failed, as the chip supplier instead wishes to avoid signing an exclusive deal. The report claims that:
Both proposals included investments, each of more than $1 billion, for the world’s largest custom maker of chips to set aside production dedicated to making chips exclusively for them, said the people, who declined to be identified because the details are not public. The two companies are trying to satisfy booming demand for smartphones, a market estimated by to be worth $219.1 billion, according to data compiled by Bloomberg Industries. Any deal would give Apple an alternate supplier to Samsung Electronics Co. (005930), which builds the main chip used in the iPhone and iPad and is also its biggest rival in smartphones. Qualcomm needs to boost supply, since shortages are starting to limit earnings.Back in July, we heard that Apple was looking to move its memory chip orders to TSMC. In the continuing aftermath of the Apple-Samsung patent trial, it indeed looks like the Cupertino, Calif. company is certainly looking to hugely reduce its dependence on the Galaxy Tab-maker. Though TSMC has noted in recent weeks that it would be open to dedicating one of its two factories to a single customer, it would appear that whatever Apple has sought to gain (which, perhaps, is exclusive access to both factories) has been declined. If any more news hits the Web regarding this story, we'll be sure to let you know. Source: Bloomberg