Apple chip supplier TSMC announces record profits, migrating to more advanced technology
Taiwan Semiconductor Manufacturing Company – better known as TSMC – has posted record Q4 profits after taking around 60% of the orders for the A8 chip in the iPhone 6/Plus. Nasdaq reports the company’s net profits for the quarter rose 79% year-on-year.
TSMC, the world’s largest contract chip maker by revenue, said Thursday that net profit for the three months ended Dec. 31 was 79.99 billion New Taiwan dollars (US$2.51 billion), up from NT$44.81 billion a year earlier.
TSMC’s move into 20-nanometer chip production enabled Apple to reduce its reliance on Samsung for the A8 chip, with the chipmaker saying that it is making further investment in more advanced chip-making technology. It plans to increase its capital expenditure this year to $11.5-12B, up from $9.52B last year.
A KGI report yesterday predicted that TSMC would pick up 100% of orders for the A9X chip expected to be used in the next-generation iPad, as well as making all of the A10 chips for the nominal iPhone 7, and all the S2 chips for the second-generation Apple Watch.