Majority of Apple A9 Contracts go to TSMC Rather Than Rival Samsung

Taiwan Semiconductor Manufacturing Co. (TSMC),  major pure silicon foundry, has secured nearly 80% of Apple's A9 processor contracts with its reliable 16nm Fin Field Effect Transistor (FinFET) process technology, beating Samsung's unstable 14nm FinFET process, refuting Samsung executives' claims to have won  such contracts.

Industry executives say Samsung had lost the contracts due to failing to make its 14nm process reliable, prompting Apple to outsource with TSMC.

TSMC will begin to make the processors in July next year at its Fab14 factory, which will be tooled up with16nm process equipment in January next year. Informed sources say TSMC will install monthly capacity of 50,000 silicon wafers of chips using the 16nm process by June next year, with a capacity of around 17,000 wafers converted from its 20nm process tools and the remaining capacity from new tools.

The company's board of directors has approved NT$167.2 billion (US$5.57 billion) for the new equipment. Beginning January next year, TSMC will begin to tool up its Fab14 factory's Phase 7 and Phase 8 production modules for the 16nm chips.

TSMC recently announced having done pilot production of a smartphone processor and a network-connectivity chip using 16nm FinFET process, as well as having set up a complete design setting for the 16nm FinFET process, to support electronic design automation tools verified with silicon-chip makers and over 100 silicon intellectual properties.

The Apple contracts will significantly help drive TSMC's sales next year. (KL)