Apple and Samsung love-hate relationship makes TSMC the awkward third wheel.
Apple and Samsung’s love-hate relationship is something most of us can relate to. The Apple-Samsung rivalry on the mobile front has been bitter, to say the least. They have dragged each other to court more times than they care to think about and they both had their fair share of words of vinegar. There is a chemistry between the two companies, yet it’s something that works only when timing is right.
Taiwan Semiconductor Manufacturing Co Ltd. (TSMC) is the nice guy of the story. The one caught in the middle of one of those “complicated relationships”. TSMC could have been a potential manufacturer for the 14 nanometer A-series smartphone chips, to be shipped with the highly anticipated Apple iPhone 6, but as every “nice guy” knows, it all comes down to making the cut, and the “It’s not you, it’s me” speech from Apple to TSMC is likely to happen into the second half of 2015, as production of the iPhone 6s begins.
Michael Liu (KGI Securities), claims Samsung will be involved in the A-series chips production for both Apple and Qualcomm, and as far as TSMC is concerned, Apple’s decision is very much based on skepticism over TSMC’s ability to deliver on its promises, and who can blame Apple? The iPhone 6 is a turning point for the company, and Samsung, even in its position as a competitor, sets the bar pretty high when it comes to manufacturing hardware technology for the best brands in the world.
Taiwan Semiconductor seems to be getting ready to stand in the rain (cue the music) as its shares have taken a 4.6 percent dip on Thursday morning. Having said that, according to a Reuters article, Chairman Morris Chang, during an investor conference, mentioned how TSMC will regain a sizable market share in 2016 with its 16 nanometer chips.