TSMC's New Manufacturing Gear May be for iPhone Processors

Taiwan Semiconductor Manufacturing Company (TSMC) just bought nearly US$30 million worth of manufacturing equipment, which fits nicely with the report that the company will be Apple's partner for A10 processors. The timing also works for damaged equipment from the recent Taiwan earthquake.

TSMC spends $30 million on new chip manufacturing equipmentTSMC spends $30 million on new chip manufacturing equipment

Assuming the equipment purchase is so TSMC can increase production for Apple's mobile chip demand, the timing could let the company get everything in place ahead of the next iPhone manufacturing ramp up.

A report from earlier in February said Samsung lost out on the A10 chip production deal and TSMC will the Apple's only manufacturing partner. Sources said Samsung has been scrambling trying to find new clients to make up the massive revenue loss from missing out on future iPhone chip production.

Going with a single manufacturing partner doesn't fit with Apple's modus operandi, so it's possible TSMC will be the primary A10 chip maker and Samsung will get smaller production orders. Still, the timing for TSMC's equipment purchase is interesting.

Apple hasn't commented on who its chip manufacturing deals, so there isn't any official word on who will make the chips for the next iPhone model.

[Thanks to Reuters for the heads up]

[Some image elements courtesy Shutterstock]