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Samsung to get new iPhone chip orders in 2015: broker

Samsung to get new iPhone chip orders in 2015: broker

Taipei, Feb. 2 (CNA) South Korea's Samsung Electronics Co. (??) is expected to win the majority of orders for the processors powering the next-generation iPhone in 2015, underlining a strategy by Apple Inc. (??) to diversify its foundry suppliers. In a research note dated Jan. 29, a major U.S.-based brokerage said that Apple had previously partnered with only one foundry for each generation of processors, including with Samsung for the 32-nanometer (nm) and 28-nm processes, and with Taiwan Semiconductor Manufacturing Co. (TSMC,???) for the 20-nm process. With broader offerings in the pipeline such as a larger iPad and a low-end iPhone, it seems clear that Apple will have a much more diverse semiconductor portfolio, the brokerage firm said. "Our view is going forward, with so many more products, it becomes easier for Apple to use multiple foundries, and to split manufacturing by products," said the U.S. brokerage, whose name cannot be reported under new rules set by Taiwan's Financial Supervisory Commission because it is offering specific forecasts. Given Samsung's bullish outlook on its 14-nm process and TSMC's guidance that the 16-nm process will only make a single-digit contribution to its revenues by the end of 2015, Samsung will likely get the orders for new iPhone chips in 2015, the brokerage noted. It expected, however, that TSMC will continue producing the A8 chips used in the current iPhone 6 and 6 Plus models in the first half of 2015 and said TSMC could also make the 20-nm chip for a low-end iPhone and a 16-nm chip for a high-end iPad in the second half of the year. The brokerage estimated that TSMC's revenues from Apple will grow from 6.5 percent of total sales in 2014 to 9.6 percent in 2015. In the second half of 2015, however, TSMC's revenues from Apple are expected to drop by around 40 percent from the same period a year earlier, assuming that Apple switches to Samsung for the new iPhone chips, according to the U.S. brokerage. Shares of TSMC rose 1.06 percent to NT$142.50 (US$4.5) Monday on the Taiwan stock exchange, outpacing a 0.27 percent gain in the broader market. (By Jeffrey Wu)


Updated : 2021-09-19 07:22 GMT+08:00