Thursday 6 September 2012

TSMC Says No to World's Largest Chip Buyer, Apple

When Apple contacted the Taiwan Semiconductor Manufacturing Company to get an exclusive access to a product line, it was confirmed that either Apple is on a look-out to further improve its technology or is hunting for an alternative to Samsung.

Industry is talking that Apple is planning to expand its chip suppliers, therefore approached TSMC with a hefty investment offer. This is not all, the company also requested TSMC to give them an exclusive access to a product line.

But, a Bloomber Report reveals that TSMC said no to Apple. And that's not the end to the story. Even Qualcomm went to Taiwan Semiconductor Manufacturing Company with a somehow similar request and was also denied.

According to the Bloomberg report:

"Both proposals included investments, each of more than $1 billion, for the world’s largest custom maker of chips to set aside production dedicated to making chips exclusively for them, said the people, who declined to be identified because the details are not public".

Apple's latest shopping spree has raised questions in the tech world. Many are assuming that Apple might be looking for an alternative to Samsung.

At present, Samsung is supplying logic chips for iPhone and iPad. But, the relationship between the two competitors hasn’t been so pleasant lately. And this could be the reason for Apple looking out to crack some exclusive deals with other manufacturers.

We all know that Samsung is sure that it wants to do chip business will Apple. But, there could be chances that Apple wants its own supply and isn't keen on being tied to a direct competitor.

The latest event also reveals about the future plans of TSMC. It is very much visible that the chip maker doesn't want to be tied to a particular customer or attract other customers to sign an exclusive deal. It comes as a surprise to everyone that a company like TSMC, so deeply involved in mobile market says no to Apple who is known to spend about $28 billion on chips every year. And as per IHS iSuppli, Apple is expected to buy almost one out of every 10 chips sold in the world.

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