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Wednesday, 29 August 2012 11:33

TSMC tells Apple and Qualcomm where to stick their money

Written by Nick Farrell



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Apple and Qualcomm have been trying to get TSMC to give their products priority by offering to invest in the company.

But according to Bloomberg the pair have been told to go “forth and multiply” by the Taiwanese manufacturer. Both proposals included investments, 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.

The deal would give Apple an alternate supplier to Samsung which builds the main chip used in the iPhone and iPad and is also its biggest rival in smartphones. Qualcomm needs to boost supply, since shortages are starting to limit earnings. But TSMC wants wants to keep the flexibility to switch its production between customers and products. The company wants to retain control of its plants, doesn’t want to sell part of itself and doesn’t need cash for investments.

More here.

Nick Farrell

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