Boston, MA 07/15/2014 (wallstreetpr) – Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) reportedly started shipping mobile chips to Apple Inc. (NASDAQ:AAPL) in the first quarter of this year and is expected to continue the shipment through 2015.
The chips are expected to feature in iPhone 6, which is expected to be launched later this year, perhaps in September.
Apple has a practice of making its suppliers agree to a vow of silence, which means that the suppliers cannot reveal their dealings with the iPhone maker unless where the law compels such disclosures. Because of the “vow of silence,” there have been no official confirmation of the Apple-TSMC dealing.
Apple sideling Samsung
Nonetheless, experts are convinced that Apple is gradually shifting its chips supply contracts from rival Samsung Electronics to other tier one chipmakers, and Taiwan Semiconductor fits the bill.
Taiwan Semiconductor (NYSE:TSM) is a contract chipmaker, and it has been upgrading its equipment to produce high-performance chips as mobile users continue to demand higher-power in the devices.
According to experts, Apple may not be done with Samsung in terms of chip supplies, however, the company considers Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) an important partner because they are not in direct competition anywhere.
Splitting chips contract
Furthermore, the experts think that in order to ensure volume supply, Apple may split its chip contracts among several suppliers as it looks for the best among them for a long-term relationship. As such, the experts believe that Apple will likely stick with Taiwan Semiconductor if it can deliver high-performance and high-efficiency chips.
If splitting chip supply contract among different foundry manufacturers becomes necessary, analysts believe that GlobalFoundries could be another beneficiary in the arrangement.
With an important deal to supply chips for iPhone 6, Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) only needs to prove its ability to earn more contracts from Apple (NASDAQ:AAPL) in the future because the company intends to introduce more new devices in the coming months.
