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TSMC to Be Sole ‘iPhone 7’ Chip Supplier: Rumour

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Apple has allegedly decided which company will supply the next-generation iPhone’s A10 chip; according to ET News (via Reuters), it’s the Taiwan Semiconductor Manufacturing Company (TSMC). The semiconductor company has reached an exclusive deal to supply the processor that will power the iPhone 7, because of its 10-nanometer manufacturing process.

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You may recall that both TSMC and Samsung supply A9 chips for the iPhone 6s and 6s Plus, which has been a topic of discussion on multiple forums due to the performance differences the devices have shown based on the supplier’s chip. While the differences have been tiny, it looks as though Apple has decided to eliminate such issues moving forward and has allegedly chosen TSMC as single supplier for two reasons: the 10 nm process, and more advanced device packaging techniques. The chips will enter full production in June.

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It is worth noting that Apple’s move to use a single supplier is a huge shift from its current supply chain strategy. The company has been using multiple suppliers for a single component, which is how Samsung ended up with 70% of A9 chip production and TSMC the rest (according to rumours).

Apple is widely expected to unveil the next-generation iPhone at a media event in September. The device is rumoured to feature a flush rear camera, no headphone jack, and sources have indicated that Apple may distinguish the 7 Plus models (besides by size) with a dual-lens camera system.

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