Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

MacRumors

macrumors bot
Original poster
Apr 12, 2001
63,194
30,135



apple_a6_chip-150x168.jpg
China Economic News Service reports on a research note from Citigroup analyst J.T. Hsu claiming that Apple is working with Taiwanese chip manufacturer TSMC as its sole supplier for future quad-core chips based on more efficient 20-nanometer processes. The timeline shared by Hsu suggests that the quad-core chips could make their way into products such as the iPad in 2014.
Citigroup Global Markets' market research fellow, J.T. Hsu, pointed out that Apple 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 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.
TSMC is in the early stages of developing its 20-nanometer processes, but the company promises significant improvements with the technology.
TSMC's 20nm process technology can provide 30 percent higher speed, 1.9 times the density, or 25 percent less power than its 28nm technology. TSMC 20nm technology is the manufacturing process behind a wide array of applications that run the gamut from tablets and smartphones to desktops and servers.
Apple currently uses Samsung as the manufacturer of its A-series chips for its iOS devices, testing out a 32-nanometer process with a revised A5 chip launched in the tweaked iPad 2 and the third-generation Apple TV earlier this year. Apple moved full-bore into the 32-nanometer process for the new A6 chip used in the iPhone 5.

Apple had been rumored several times over the past 18 months to be switching its ARM-based chip production to TSMC, but the company has so far stuck with Samsung. A late August report indicated that Apple and Qualcomm had each attempted to purchase exclusive access to TSMC's chip production, but TSMC ultimately rejected both bids. TSMC has, however, indicated that it remains open to dedicating individual factories to single customers, and it appears that Apple may be interested in pursuing that route in order to take advantage of TSMC's technical and manufacturing expertise.

Article Link: Apple Reportedly Tapping TSMC for 20-nm Quad-Core Chips with Late 2013 Production
 

BurchBoy

macrumors newbie
Jul 4, 2008
27
0
The better these chips get... The more powerful my apps get. This is always good news to me. I'm loving the A6
 

Tiger8

macrumors 68020
May 23, 2011
2,479
649
To me this should put an end to the speculation on wether a revised iPad 3 is going to be released this year: Probably not. I think we will see a revised iPad 3, in March of 2013, with this new 20nm chip, along with the iPad 4th. I don't think they will use Lightning connector, just like they didn't revise the iPhone 4S's connector.
 

basesloaded190

macrumors 68030
Oct 16, 2007
2,693
5
Wisconsin
To me this should put an end to the speculation on wether a revised iPad 3 is going to be released this year: Probably not. I think we will see a revised iPad 3, in March of 2013, with this new 20nm chip, along with the iPad 4th. I don't think they will use Lightning connector, just like they didn't revise the iPhone 4S's connector.

Did you read the part of the article where it said that production of these chips wasn't going to begin until 3Q 2013?
 

layte

macrumors regular
Jul 23, 2008
205
13
Jumping on a state of the art TSMC node has always worked out well. Their 40 and 28 nodes have had massive production issues long after they were implemented.
 

Rocketman

macrumors 603
I believe this focus on a non-Samsung supplier is not about shifting commerce so much as shifting access to IP. Apple is increasingly doing custom mods to its chips that provide a competitive advantage, and the longer it takes for Samsung to get one and put it under a few electron microscopes, the longer it will take the clonemaster to clone it.

It is notable just how much of a difference 20nm makes over the prior generation in the one area Apple cares about most. Density. 1.9x as good!

Of course Apple will not focus on speed or power usage so much as thinness and volume. Speed always comes in third in that mix.

SIM-less and Voice-less can't be far away. VoIP only voice here we come.

Rocketman

cite:
https://www.macrumors.com/2012/10/15/apple-and-samsung-moving-into-hate-hate-relationship/

"Apple is still relying on the Korean firm to manufacture its chips but has made it clear it will no longer use its rival's technology, according to a senior Samsung official. "
 
Last edited:

newagemac

macrumors 68020
Mar 31, 2010
2,091
23
It's not often that you get the opportunity to leave one company for their competitor and not only do they lose your payments as their single biggest customer, they have to actually pay YOU $1 Billion as you take your business elsewhere.

Ouch! :eek:
 

fertilized-egg

macrumors 68020
Dec 18, 2009
2,109
57
sole supplier for future quad-core chips

Something doesn't quite sound right though. If anything Apple will try to add more suppliers not reducing them. Relying on a single company that's well known to have its share of production problems just doesn't sound like Tim Cook-era Apple.
 

basesloaded190

macrumors 68030
Oct 16, 2007
2,693
5
Wisconsin
No. Big no-no.

You don't use market cap as a measure of "price tagging" companies.

I realize that, I appraise companies for a living and know that there is so much more than just stock to consider when a purchase is made. I'm not saying Apple should do this, but I'm saying that they could.
 

theBB

macrumors 68020
Jan 3, 2006
2,453
3
No. Big no-no.

You don't use market cap as a measure of "price tagging" companies.
Market cap is the price of a company, with some extra for acquisition premium, but yes, market cap is the reference point.
 

jav6454

macrumors Core
Nov 14, 2007
22,303
6,256
1 Geostationary Tower Plaza
I realize that, I appraise companies for a living and know that there is so much more than just stock to consider when a purchase is made. I'm not saying Apple should do this, but I'm saying that they could.

Still no. What would Apple do in the chip business? Intel is already wary of Apple as is, doubt they'll play nice knowing Apple will be their competitor.

Apple needs only a chip supplier, not a chip making business. Although I loathe at time TMSC due to their 40nm snafu with nVidia and AMD (ATI at time).

----------

Market cap is the price of a company, with some extra for acquisition premium, but yes, market cap is the reference point.

Reference tag =! Price tag. That is all.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.