“If TSMC has won the A11 in its entirety, then the chip manufacturer won’t have to worry about tough year-over-year comparisons from late 2017 through late 2018,” Eassa reports. “In fact, since both A10 and A11 are said to be TSMC-exclusive, TSMC should actually benefit during the iPhone 8 cycle as it will have the orders for the chips that go into both the flagship iPhone as well as the discounted prior-generation model.”
Eassa reports, “Although I expect Samsung’s foundry to have a fairly large captive customer in the form of Samsung’s own chip design teams, I’m not all that optimistic about its chances as a third-party contract logic chip manufacturer going forward.”
Read more in the full article here.
MacDailyNews Take: Good news all around, but Apple should definitely allow others (Samsung, GlobalFoundries, etc.) to compete (or look like they’re competing) for future chip fab orders (A12 and beyond) in order to keep some negotiating strength for dealing with TSMC. You never want all of your eggs in one basket.
TSMC reportedly nabs exclusive orders for Apple’s A10 and A11 chips – July 18, 2016