iPhone 7 ‘A10’ chip orders to help grow TSMC’s quarterly revenue by 20 percent

By , Jun 30, 2016

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Taiwan Semiconductor Manufacturing Company, the world’s top semiconductor foundry which Apple has commissioned to build ‘A10’ processors for the next iPhone alongside Samsung, is expected to grow its revenue substantially in the third quarter of this year thanks to these orders.

Taiwan’s Central News Agency, quoted by trade publication DigiTimes, said this morning that TSMC is reportedly forecast to grow revenues almost twenty percent sequentially in its third quarter “as shipments for Apple’s A10 processors will kick off soon”.

Rising chip orders for Android phones, plus orders for GPUs and virtual reality solutions, will also boost TSMC’s quarterly revenues during the third quarter.

In early-May 2016, TSMC taped out the Apple-designed A11 chip that will power this year’s iPhone and iPad refresh. Taped out semiconductor designs are required before the verification and test production phases can proceed ahead of mass production.

TSMC also set aside a record-setting $2.2 billion budget to ensure that its fabrication process technology stays ahead of competition and has been ordering additional manufacturing equipment lately. By comparison, the company spent just $1.067 billion on R&D in 2015. Capital expenditure for 2016 will reach $9-$10 billion, up from the $8 billion allocated for 2015.

Image courtesy repair firm iFixit.

Source: DigiTimes

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