Looks Like Apple Has Chosen A Clear Cut Winner For Mass Producing A10 Orders


We had reported previously how it was rumored that Apple was going to give all 100 percent of its chip orders to TSMC. Well, it looks like the tech giant has finally decided the winner. Let us take a look at who is going to be generating a handsome amount of revenue thanks to mass producing the company’s next generation SoC, A10.


Apple Might Have Chosen TSMC To Mass Produce A10 – Heavy Revenue Growth Expected For The Company

According to HSBC, analysts have stated that TSMC’s stock is going to rise again, on the account that the company is going to receive all 100 percent of orders for producing Apple’s next-gen chipset, A10. While A9X and A9 were manufactured on Samsung’s and TSMC’s 14nm FinFET and 16nm FinFET architecture respectively, A10 is going to be produced on the 10nm FinFET node. HSBC has recommend that TSMC should definitely be a stock that investors should look into since the potential deal will most likely be bringing in over $300 million in sales in 2016 and reach $1 billion during 2017.

Analysts Steven Pelayo and Lionel Lin initially spoke out against TSMC, concerned that thanks to variables such as a slowing smartphone market, lofty customer concentrations, insourcing and competition, the semiconductor manufacturing firm might not be able to generate substantial revenue. However, now, the analysts have predicted that TSMC may generate between USD 2.2-2.5bn in A10 revenue.


If they included the residual A9 series silicon, finger print sensors, and now integrated fan-out (InFO) chip packaging, then the estimated revenue generated by TSMC will increase to more than $4.6 billion USD in 2016 from approximately $3.7 billion USD this year. However, we are still not entirely sure that Apple is going to commit to tapping just TSMC for producing 100 percent of orders for the company’s A10 SoC. 2016 is yet to commence, so it seems pretty unlikely that the California based tech company is drastically going to come to a conclusion this soon.

We believe that Samsung is still going to produce chips for A10, but in a much smaller capacity, and the company is going to be playing the role of filling out the gaps in case TSMC is unable to deliver the total number of orders that the latter and Apple agreed upon. Do you guys really believe that the Taiwanese semiconductor manufacturing firm will be able to rise to the challenge of producing all of Apple’s A10 chip orders? Let us know your thoughts right away.