TSMC's sales for second-quarter 2015 will likely be affected by a slowdown in processor orders for Apple's iPhone 6 devices and Qualcomm's Snapdragon 810 overheating issues, according to market observers.
TSMC's processor shipments for the iPhone 6 have passed their peak, the observers indicated. Meanwhile, with Qualcomm facing overheating issues with its 810 mobile chip, which is made using the foundry's 20nm process technology, the event could affect negatively TSMC's sales performance, the observers said.
TSMC's revenues are set to decrease around 5% sequentially in the first quarter of 2015. Revenues for the second quarter are unlikely to register a sequential increase, which would be the first time in three years that second-quarter revenues saw zero growth, the observers noted.
In addition, market rumors have circulated recently that TSMC has postponed the installation of 16nm production lines at its Fab 14 in southern Taiwan by one quarter. However, industry observers believe that TSMC is on schedule to ramp up production on its 16nm lines. Many of TSMC's equipment for the established 20nm node will be reused at 16nm, the observers indicated.
Whether TSMC can remain the major supplier for Apple's next-generation processor will be key to determining the foundry's performance for 2015, according to the observers.
Article translated by Jessie Shen
