The Apple Samsung TSMC Intel 14nm Mashup!
One of the strengths of the fabless semiconductor ecosystem is competition since it keeps innovation high and prices low. One of the challenges of fostering competition is that you have to make good on a threat of using a competing product during a pricing negotiation. Well, in my opinion, for the next version of the iPhone, Apple did just that. Apple put Samsung and TSMC against each other and as a result will use both Samsung 14nm and the better performing TSMC 16nm FF+ for the 2015 iProducts. Since Samsung is a quarter or two ahead of TSMC on FinFETs, Samsung will get the iPhone business in Q3 2015 and TSMC will get the iPad and maybe a MAC Book in Q4 2015. Qualcomm, NVIDIA, AMD, Broadcom, and the other fabless heavyweights will follow suit. It’s all about wafer price negotiations and that is what keeps us strong.
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