“Both Taiwan Semiconductor Manufacturing Company’s and Samsung’s 10nm processes have reached lower-than-expected yield rates, according to industry sources,” Josephine Lien and Jessie Shen report for DigiTimes. “TSMC has reportedly obtained 10nm chip orders from Apple, HiSilicon and MediaTek, with volume production set to kick off in the first quarter of 2017. Nevertheless, yield rates for TSMC’s 10nm process technology are not what the foundry expected, the sources said.”

“TSMC is scheduled to start making Apple’s A10X chips for the next-generation iPad series slated for launch in March 2017. Unsatisfactory yields for the foundry’s 10nm process could disrupt the schedule, the sources indicated,” Lien and Shen report. “TSMC reportedly will also manufacture Apple’s A11 chips for use in the iPhone 8 with volume production scheduled to kick off in the second quarter of 2017, the sources said.”

Read more in the full article here.

MacDailyNews Take: Hopefully, yields will improve dramatically and rapidly as the last thing Apple needs is yet another poorly-stocked product-free launch.