Boston, MA 12/19/2013 (wallstreetpr) – Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) is mainly a foundry chipmaker employing the latest technology in its integrated circuits. TSM chips are used by different mobile OEMs worldwide and its fame is already translating into big profits.
The company is rumored to be engaging Apple Inc (NASDAQ:AAPL) for the supply of high-end chips for the latter’s next generation devices. This deal could see the two companies enter a long-term partnership as early as end of 2015.
Currently Apple buys most of its chips from Samsung Electronics which is also its business rival. Apple uses a line of chips called A7 and this chip feature in its latest iPhones and iPads. The next generation chip that it would use in its upcoming products such as iWatch and Apple television have been code-named A8. This is the chip that TSM would supply to the company if the ongoing talks end in a deal.
It is reported that a deal with Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) could see Apple take between 60 and 70 percent supply order from Samsung to TSM.
The next generation chips to be manufactured by TSM are expected to put a lot of power into the hands of Apple as it would allow the company to branch out and try its hands in uncharted product paths.
This year, Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) has been readying its factories for big chip production. It has recently finished construction of a new factory and is upgrading its current plants for capacity and efficiency. The increasing uptake of smartphones is giving the company a lot of business and its foundry capacity allows it to process large orders within a limited time.
TSM is currently testing new design technologies to cram more power into the tiny chips it makes. This is due to the fact that the market continues to demand tiny yet extremely high-performance devices.
The market values Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) at $88 billion and it has about $5 billion shares outstanding. The stock trades around $17 per share on NASDAQ.
