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TSMC Wins a Land Slide Victory Over Samsung by the 16nm Technology

By Vincent Wang
Published: Jan 04,2016

TAIPEI, Taiwan — Source from the semiconductor equipment revealed that Samsung has informed its equipment partners to postpone the expansion of its logic chip plants due to less-than-expected orders of its 14nm chips. However, it is widely circulated that TSMC has won a land slide victory over Samsung by the 16nm manufacturing process technology.

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Reportedly, If Samsung slowed down postpone the expansion of its logic chip plants, which means TSMC’s 16nm is unstoppable and is highly expected to win the 70 percent to 100 percent orders of Apple’s next-generation processor A10. In other words, it’s a land slide victory of TSMC in advanced manufacturing process technology.

Therefore, TSMC will not be conservative about capital expenditure this year as customer demand improves. According to an earlier report, TSMC’s capital expenditure guidance of the year will be as much as $12 billion in the 16nm and 10nm productions.

However, TSMC had twice chopped its capital expenditure guidance from as much as $12 billion given at the start of 2015 to $8 billion, which would be a four-year low for the company.

Moreover, TSMC started the production of Apple’s A9 chip for iPhone 6s and iPhone 6s Plus in the third quarter of 2015 that outshined Samsung after a trial run. Samsung and TSMC has been fighting for the spot to take the lead to manufacture chips for Apple products.

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