HSBC: TSMC Will Be The Only Apple A10 Manufacturer

Dec 04, 2015

2016 should be an exciting year for Apple enthusiasts as the next-gen iPhone is likely to introduce a new design. Furthermore, the iPhone 7 should be equipped with a new A10 processor, and if we draw a parallel between iOS and the evolution of Mac OS into OS X, then perhaps the company’s mobile operating system will also see significant changes next year (iOS X perhaps?).

But speaking of the A10 SoC, today we came across yet another report (the previous one originating from sources in China) suggesting that the chipset will be solely manufactured by TSMC. As most of you know, the A9 CPU is built by both TSMC and Samsung, with TSMC’s variant reportedly performing better in certain synthetic benchmarks.

HSBC: Apple A10 Will Be a TSMC-Exclusive

Although it’s quite unusual for Apple to rely on a single supplier for a given hardware component, throughout these past several years TSMC proved that it has what it takes to meet the Cupertino giant’s expectations. The chipmaker’s stock also increased by 4.2% in 2015, whereas Samsung Electronics’ dropped by 4%.

With that being said, HSBC recently revised its market analysis and pushed TSMC from “Neutral” status to “Buy”, all the while bumping the stock price target from 148 Taiwan dollars to NT$165. HSBC adds that TSMC will gain 100% of Apple’s A10 orders in 2016, which will likely translate into $300 million in sales for TSMC in 2016, and roughly $1 billion in 2017.

Furthermore, because 14% of TSMC’s business in 2015 was covered by Apple alone, and because Apple’s market is expected to grow by 24% in 2016, TSMC should also experience a 7.9% revenue growth next year.

HSBC Holdings plc is a London-based multinational banking & financial services company, and the world’s fourth largest bank with total assets reaching US$ 2.65 trillion.

Source: G4Games