HSBC analysts predict that all Apple A10 chips will be made by TSMC

Following this year's controversy over which company produced the more powerful Apple A9 chipset, Apple will be turning to one manufacturer next year for all of its A10 production, according to analysts working for HSBC. In a report sent to clients, Steven Pelayo and Lionel Lin predict that TSMC will get an order from Apple for 100% of the tech titan's supply of next year's A10 chip. The component will find its way into the Apple iPhone 7 and Apple iPhone 7 Plus.

Back in October, benchmark tests revealed surprising differences in the performance of Samsung's A9, and the TSMC built version of the chip. TSMC's A9 seemed to run faster and offer better battery life for users of the Apple iPhone 6s and Apple iPhone 6s Plus. Apple responded by saying that the differences in battery life between the two chips was an acceptable 2% to 3% variance. After Apple's announcement, the controversy seemed to die off.

The two HSBC analysts say that Samsung accounts for 60% to 70% of the A9 chips produced this year. The duo originally expected the numbers to flip flop next year, with TSMC responsible for as much as 70% of A10 production. Now, the analysts expect TSMC to grab all of the A10 business which will result in $2.2 billion to $2.5 billion in revenue for the chip maker.


Earlier reports from other sources, including an unnamed J.P. Morgan analyst out of China, call for TSMC to earn 100% of the A10 business in 2016.

source: Barron's via GforGames