Facing poor yield rates from chipmaker GlobalFoundries, Apple has decided to shift its domain
Ming-Chi Kuo of KGI Securities has issued a note informing the investors about Apple’s "last-minute decision to recruit TSMC." Apparently Apple is adjusting these changes after GlobalFoundries has reported experiencing some problems with the yield rates on production of the next-generation CPU. At the moment, their chip yield rate for the ‘A9’ stands at 30 percent which certainly is far away from the mass production requirement of 50 percent. Kuo says that "Recruiting TSMC reduces supply uncertainties for Apple.”
Kuo says that there might be one more reason for the last minute change and it might be Apple’s concerns over Samsung’s chipmaking business. Apple fears that it might not be capable of supplying enough of its 14-nanometer design. This fear might come from a solid ground since the Galaxy S6 smartphones sold off more than expected and they could have likely pulled away these 14-nanometer orders away from Apple.
TSMC's 16-nanometer FinFET Turbo design on the other hand has gone far ahead of Apple's expectations in terms of both yield rate and performance. Timothy Arcuri from Cowen and Company has also indicated the same in another report which details factors such as strong yields and attractive pricing for being the reason behind being Apple’s major orders. Hence, there is sufficient proof to show that this year’s iPhone is going to feature an updated and an even more efficient version of the same design.