Apple’s Money Not Enough to BUY Chip Love!

  Google+  Twitter | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Apple (NASDAQ:AAPL) reportedly offered Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) more than $1 billion to become a dedicated chip producer for the iPhone maker, but was denied. TSMC has said it intends to keep its interests in the rapidly growing smartphone market open. The company also denied an investment bid from Qualcomm (NASDAQ:QCOM), according to Bloomberg.

Don’t Miss: Who is Apple’s New FRIEND?

Currently, Apple relies on Samsung for the A-series chips used in its mobile devices, an increasingly uncomfortable scenario considering the intense rivalry the two share in the smartphone market and the legal confrontations they are involved in as a result. Samsung is also a supplier of displays and other device components for Apple.

TSMC, the world’s largest custom chip maker, already supplies Apple with iPhone and iPad chips through foundry services for Broadcom (NASDAQ:BRCM), CSR, Cirrus Logic (NASDAQ:CRUS), and Qualcomm.

While TSMC chairman Morris Chang told investors last month he would be happy to devote one or two factories to a single customer, the conditions in the separate deals from Apple and Qualcomm appear to have been unacceptable. Chief financial officer Lora Ho also said that dedicating a plant to a single product or customer was risky, since the client or technology could change.

“You have to be careful. Once that product migrates, what are we going to do with that dedicated fab?” Ho said. “We would like to keep the flexibility.”

Don’t Miss: Is Apple’s Retail Model Set to Change FOREVER?

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business