TSMC Will Be Sole Supplier of Processors for Next iPhone Models: Report

Taiwan Semiconductor Manufacturing Co Ltd will be the exclusive supplier of mobile processors for Apple Inc's next iPhones, South Korea's Electronic Times reported on Thursday citing unnamed industry sources.

TSMC beat rival chipmaker Samsung Electronics Co Ltd to make the processors using 10-nanometre manufacturing technology, the report said. Samsung and TSMC both supply the processors for the iPhone 6s and iPhone 6s Plus.

Earlier this week, TSMC said said silicon wafers were damaged at a plant in southern Taiwan where a quake hit early on Saturday, affecting no more than 1 percent of first-quarter shipments.

The world's biggest contract chipmaker has one of its largest and latest 12-inch wafer production facilities in the city of Tainan, where a 6.4-magnitude temblor led to the collapse of a 17-storey building and at least seven deaths.

TSMC, whose customers also include Qualcomm Inc, is so far the only major Apple supplier in southern Taiwan to report damage from the earthquake. Acting spokeswoman Elizabeth Sun said wafers in the process of manufacture were seen broken.

Late last month, several Apple suppliers in Asian said they expect revenues and orders to drop this quarter, indicating iPhone sales are almost certain to post their first annual decline since the flagship product was launched almost a decade ago.

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The forecasts of lacklustre sales by companies included TSMC, and smartphone camera lens producer Largan Precision Co Ltd add to concerns about Apple's outlook amid slowing global demand for smartphones.

Industry executives say the latest iPhone did not have enough new features from the previous model to tempt users, raising fears that Apple's innovative streak - and the profits it has generated - may be running its course.

Apple, which reports December-quarter results on Tuesday, declined to comment on its sales outlook.

Edited by Gadgets 360 staff from original story by Reuters