Apple has recently signed a foundry partnership agreement with Taiwan Semiconductor Manufacturing Company (TSMC), industry sources have claimed. Under the terms of the agreement, TSMC will apply its 28nm and 20nm process technologies to produce Apple’s next-generation CPUs, according to the sources.
The contract appears to be long and lucrative for TSMC..
TSMC is believed to have quietly secured Apple’s contract, and even succeeded in extending the deal to cover the manufacture for the A6’s successor, the sources said.
In addition, the agreed contract quotes are favorable to bring little impact on TSMC’s profitability, the sources revealed. TSMC managed to negotiate a good price, allowing gross margins yielded by Apple’s orders to be similar to its overall gross margin performance at present, the sources indicated. TSMC’s gross margin for the second quarter of 2011 arrived at 46%.
The details weren’t released publicly and as can be expected, neither company is commenting on the move.