Bits + chips
TSMC to be only supplier of Apple A13 chips in 2019
Monica Chen, Taipei; Jessie Shen, DIGITIMES

Taiwan Semiconductor Manufacturing Company (TSMC) is set to win all orders for A13 chips that Apple will reelase in 2019, extending its dominance in the pure-play foundry sector, according to supply chain sources.

TSMC grabbed a 56% share of the global pure-play foundry market in the first half of 2018. With TSMC set to remain Apple's exclusive supplier of A-series chips in 2019, the Taiwan-based foundry stands a good chance of seeing its global market share top 60% next year, the sources said.

The sources said TSMC is set to remain Apple's exclusive contract chipmaker fulfilling all orders for the next-generation A13 chip in 2019. TSMC has been the exclusive supplier of Apple's A-series chips since 2016.

TSMC's 7nm process technology is also expected to obtain orders from AMD, Huawei, MediaTek, Nvidia and Qualcomm. A ramp-up of 7nm chip orders will boost the foundry's market share to a new high in 2019, the sources noted.

TSMC's in-house developed integrated fan-out (InFO) wafer-level packaging technology has made its 7nm process technology more competitive than its counterparts, the sources suggested. TSMC is also expected to introduce the industry's first commercially-available 7nm EUV process, the sources believe.

With Globalfoundries putting its 7nm plans on hold indefinitely, TSMC will have fewer competitors in the advanced sub-10nm process segment. TSMC is also ahead of Samsung in the 7nm foundry business as the Korea-based foundry has secured orders from only Qualcomm and its own mobile division, the sources noted.

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