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TSMC likely to remain exclusive supplier of Apple’s A13 chipsets

12 October 2018 0

TSMC has become the exclusive supplier of Apple’s A-series chips over the past few years. Earlier Samsung was also one of the Supplier’s for Apple, however, the Cupertino giant has slowly shifted to TSMC to reduce its dependence on its rival.

TSMC has become the exclusive supplier of Apple chips over the last four generations. The company’s exclusivity deal kicked off in 2016 and has continued since then. TSMC is also likely to remain the exclusive supplier for 2019 iPhone line-up. TSMC's packaging offerings are considered significantly superior to other chipmakers, including rivals Samsung and Intel.

Arete Research analyst Brett Simpson said, “As long as TSMC continues to offer something new at leading-edge every year and continues to execute well on yield, I could see Apple remaining sole source on foundry at TSMC for years to come.” We have previously heard that Samsung was trying to win some orders for 2019’s A13 chipset, but this report seems to cast some doubt on whether or not that will happen.

Credit Suisse analyst Randy Abrams adds, “Apple and TSMC have mutually benefited to date from the relationship; Apple has been able to have annual upgrades to its processors, and TSMC has a very large anchor customer to bring it up to scale on its new nodes.”


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