Roger Fingas
Apple is asking Samsung and TSMC to accept price cuts on orders of A9 chips for its new iPhones, but TSMC's inclination to decline could result in the supplier having to scale back production capacity, a new rumor claimed on Tuesday.
Both Samsung and TSMC have 14- and 16-nanometer FinFET capacity ready to go for the A9, supply chain sources indicated to DigiTimes. Samsung has reportedly agreed to Apple's demands, going so far as to provide "almost-free" backend services for the chips, with the hope of becoming Apple's primary source.
TSMC has been more hesistant, the sources said, and if so might have to cut back on a planned 16-nanometer ramp-up in August from 30,000 wafers to less than 20,000. Orders from companies wanting similarly-sized chips would allegedly be too small to make up for the gap left by reduced Apple orders.
TSMC has reportedly insisted that the ramp of its 16-nanometer production is going ahead according to plan.
DigiTimes has a spotty track record on predicting Apple's future product plans, but it does have sources inside the Far East supply chain who have provided accurate information on Apple's partners.
Full-scale production of new iPhones may be imminent or already underway if Apple is planning to announce new devices on September 9. Recently, though, KGI Securities analyst Ming-Chi Kuo claimed that production would be delayed one or two weeks, even with capacity for older models being diverted.
Andrew Orr
Amber Neely
William Gallagher
Christine McKee
AppleInsider Staff
13 Comments
Spotty track record? More like a leopard of track records.
DigiTimes propaganda.
most negative articles about Apple ever in one 24 hour period, this is a new record?
Oh lets see normal negotiation Apple tells supplier unless they can get this price they are giving the business to another supplier. There is no story here and until someone takes apart the A9 no one will know for sure who got the business. Remember there were rumors that Samsung has 40% of the A8 business but no one found a single chip made by Samsung. I believe the 40% business that Samsung got was all the A7, A6 and A5 chips which Apple is still put in older products. THe only questions is will Apple swith back to Samsung since they plan to stop shipping products with the older processors and it would not make sense to load up TSMC with both the A8 and A9.
most negative articles about Apple ever in one 24 hour period, this is a new record?
How is this negative regarding Apple? If true, it means they are getting A9 chips at bargain basement so this would be a big positive for their profit margin.