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TSMC recently announced plans to build a $3 billion chip production factory in Nanjing, China. The company is noted to keep costs down by using materials from its Taiwan facilities, while taking advantages from Chinese subsidies, which was noted on its main site.

According to a post by the New York Times, TSMC plans to fix the issue with their technology being leaked to competitors by being one generation ahead with their Taiwan factory, which by that time the Nanjing complex is reported to be complete.

Intellectual property is a major reason for TSMC wanting to finish ownership of the factory, instead of going the partnership route of businesses like Qualcomm. The new factory is contingent on the prosperity of an application to Taiwan’s Ministry of Economic Affairs.

Moreover, although they have other clients, TSMC has swiftly risen to prominence in the Apple supply chain. Looking back, the company produced a large sum of Apple’s A8 processors, and put out a smaller proportion of A9 chips, which includes the A9X chips in the iPad Pro. The latest rumors note that TSMC will become the main provider for the iPhone 7 A10 chips, leaving Samsung out of the process. In addition, for years Samsung was the only manufacturer of A-series processors at a factory in Austin, Texas. However, if these rumors are true, we could see TSMC being the sole A-series chip supplier for Apple.

Source info: The New York Times, TSMC


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