Sam Oliver
TSMC is focusing on 20-nanometer chips because the company currently faces a shortage of processors built using the 28-nanometer production process, according to DigiTimes. At present, the company is "unable to provide sufficient capacity" to existing 28-nanometer companies, the report said citing industry sources.
"While having a tight supply of 28nm, TSMC now hopes an early investment in 20nm technology will help the foundry engage in collaboration with potential clients such as Apple in advance and ensure enough capacity to meet demand," Wednesday report said.
Sources in the overseas supply chain reportedly believe that SMC has a "good chance" of winning CPU orders from Apple in 2014. Currently, Apple still uses the 45-nanometer chip process from Samsung to make its A5X CPU that powers the new iPad.
Apple is said to have viewed newer chips built on smaller production processes to be a risk to their products, as potential shortages could cause issues for newer versions of the iPhone and iPad. Instead, Apple has stuck with older production processes to ensure availability and reliability.
To aggressively court Apple's business, TSMC reportedly plans to invest about $700 million U.S. in a 20-nanometer research and development line this year. Originally, the company planned to spend that money in 2013.
TSMC also plans to accelerate the pace of its 28-nanometer capacity expansion. The company expects to have its supply meet demand by the first quarter of 2013.
TSMC began generating revenues from its 28-nanometer chips in the fourth quarter of 2011, when they accounted for about 5 percent of the company's sales. But the company has been significantly ramping up production of those chips in 2012.
The custom chips Apple put in its new Apple TV and latest version of the iPad 2 have been seen as evidence that the company is testing the 32-nanometer chipmaking process. Moving to a smaller 32-nanometer node allows the chips to be more efficient, allowing for improved battery life in iOS devices.
Apple's primary chipmaker remains Samsung, though Apple was said to have signed a major foundry agreement with TSMC last year to build future ARM-based process.
Rumors have suggested that Apple has looked to forge a closer alliance with TSMC to move away from rival Samsung, with which Apple is engaged in a series of lawsuits.
Malcolm Owen
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36 Comments
That's a bit optimistic, thinking Apple will still be around by then... ;)
Has anybody stopped to think about another possibility here. That is that Apple is looking towards TSMC because they need the additional capacity. I really don't see them moving away from Samsung unless Sammy slips technology wise. However Sammys ability to meet Apples demand must be a real concern, thus signing up an alternative vendor. Apple doesn't buy all their RAM, Flash or other chips from a single supplier so why would they have an exclusive CPU vendor?
Why Apple is sticking with Samsung and there ancient fabrication process? 45nm is so 2008. 32nm has been around since 2010 and yet Samsung continued to make Apple's chips with 45nm process. Imagine how much more energy efficient the iPad and iPhone would have been if their processors were made with 32nm process.
[quote name="wizard69" url="/t/149793/tsmc-hopes-to-land-orders-for-20nm-chips-from-apple-in-2014-report#post_2103949"]Apple doesn't buy all their RAM, Flash or other chips from a single supplier so why would they have an exclusive CPU vendor?[/quote] That certainly makes sense. [quote name="Aizmov" url="/t/149793/tsmc-hopes-to-land-orders-for-20nm-chips-from-apple-in-2014-report#post_2103992"]Why Apple is sticking with Samsung and there ancient fabrication process? 45nm is so 2008. 32nm has been around since 2010 and yet Samsung continued to make Apple's chips with 45nm process. Imagine how much more energy efficient the iPad and iPhone would have been if their processors were made with 32nm process.[/quote] That's not accurate at all. There are technical reasons that kept the iPhone 3GS, iPad, iPhone 4, iPad 2, iPhone 4S, and iPad (3) at the 45nm process. Apple has been testing the 32nm lithography with the new Apple TV and newly lowered price iPad 2s. These are important steps before production is ready for millions per week.
[quote name="SolipsismX" url="/t/149793/tsmc-hopes-to-land-orders-for-20nm-chips-from-apple-in-2014-report#post_2104001"] That's not accurate at all. There are technical reasons that kept the iPhone 3GS, iPad, iPhone 4, iPad 2, iPhone 4S, and iPad (3) at the 45nm process. Apple has been testing the 32nm lithography with the new Apple TV and newly lowered price iPad 2s. These are important steps before production is ready for millions per week.[/quote] Makes no sense. 32nm has been in commercial production since 2010. It shouldn't take Apple or anyone 2 years to move to it.