J.P. Morgan analyst sees TSMC winning 100% of Apple A10 orders

J.P. Morgan analyst sees TSMC winning 100% of Apple A10 orders
Every year it is the same thing. We hear that Samsung or TSMC will be building a majority of Apple's next-generation Ax SoC. Then, rumors come out saying that the other firm is building the lion's share of the chipset. This back and forth has more importance to it this year because of the perceived variations between TSMC built A9 chips, and those produced by Samsung. Apple says that the variation in battery life and other metrics should be no more than 2% to 3% between the Samsung and TSMC produced A9 chips, and most benchmark and real world tests do prove Apple to be correct.

Still, even though the difference is small, there are Apple iPhone 6s and Apple iPhone 6s Plus users who want the TSMC chip on their phone. If an unnamed J.P. Morgan analyst cited by a report out of China is correct, all iPhone 7 buyers will be getting a TSMC manufactured A10 chip inside their phone next year. Despite Apple's claims, the report suggests that Apple brass might want to go with the firm that has the higher-powered A9 chipset, which would be TSMC.

But that means that Apple will have to worry about TSMC's capacity. And that will probably lead to Samsung building a minority of the A10 chips for next year. Which in turn means more benchmark tests and more talk of uneven performance. Still, Apple might not be able to totally rely on one company to produce a key component for the product that produces the majority of its revenue. Which means that despite the J.P. Morgan analyst's prediction, we don't see either TSMC or Samsung being picked to produce 100% of A10 chips. However, we wouldn't be surprised if Apple went with TSMC to fill the majority of A10 orders in 2016.

source: UDN (translated) via GforGames



1. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

Because Apple and Sammy are bitter rivals.

58. Zylam

Posts: 1817; Member since: Oct 20, 2010

More like Samsung stuffed up the A9.

88. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

2. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

And Apple wants to limit it's dependance from Samsung. it's all a marketing stunt.

5. ThePython

Posts: 902; Member since: May 08, 2013

Not really, the A9 problem this year is what will probably make them go for the other.

6. Subie

Posts: 2383; Member since: Aug 01, 2015

They need to get chip samples made by both companies and then decide. Who knows, the Samsung made chip might be the better one next year.

28. Taters

Posts: 6474; Member since: Jan 28, 2013

New tests, namely theatres hardware one shows the Samsung one being superior so I doubt that's the case. Unless it's just image issues because the damage already seems to be done to the Samsung name.

70. alex3run

Posts: 715; Member since: May 18, 2014

Those new/old tests highly depend on the crystall bin so they're quite useless.

74. JC557

Posts: 1919; Member since: Dec 07, 2011

The only problem that may arise is whether or not TSMC has the capacity to supply them their chips while fabbing processors for other companies even desktop CPUs and GPUs. Samsung has the capacity but even then are also kind of strained which is why Apple went with both suppliers.

3. AlikMalix unregistered

Well with Samsung screwing up on their manufacturing for the A9 using 2-3% extra battery than TSMC - it seems like TSMC is a better manufacturer.... I just fear for Samsung, without Apple. They barely make enough with their smartphone division...

8. TyrionLannister unregistered

They are going to make Snapdragon 820 chips, which will again sell in millions collectively. Unless you hold a share in Sammy, you shouldn't worry about them. They know better than you how to manage money. Besides, too much stress isn't good for you.

77. cnour

Posts: 2305; Member since: Sep 11, 2014

Hopefully the phones with this processor wil not explode!!!!!

9. shoman94

Posts: 25; Member since: Oct 16, 2015

I read it the other way here: tomshardware.com/news/iphone-6s-a9-samsung-vs-tsmc​,30306.html

11. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

Samsung did not screw the A9, it's rather Apple's fault... the A9 was 100% designed fo TSMC's 16nm process., but Apple later had to include Samsung in the A9 manufacturing because TSMC alone could not meet the huge demand. So Apple had to do a modification on the A9's design in order to make it work on Sammy's 14nm! So it is very normal that Samsung's A9 underperforms, because it wasn't designed for Sammy's process in the first place.

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

It doesn't under-perform. It just depends which site is claiming such. At Tom's Hardware where they have no Apple bias, they got far different results. It turns out Samsung has the actual advantage accoridng to their tests. http://www.tomshardware.com/news/iphone-6s-a9-samsung-vs-tsmc,30306.html

18. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

It's neither fault. 2-3% just isn't enough. Its within tolerance. They just wanna dog Samsung. if the biased sites were saying Samsung chipset was better, you think they would be dragging TSMC through the mud? NOT HARDLY!!! Who cares who or what Apple uses?

33. AlikMalix unregistered

After you read my post below, I want to let you know, none of the stuff u said in post #18 is wrong. :)

14. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Whatever dude...2-3% is such a small margin. It is simply cant be notice without some lame benchmark that proves nothing. You really think people can tell if they have a device with the Samsung chipset and they are actually getting less battery usage? I doubt it because these same paopel have their phones glued to their hands and have terrible battery-life anyways. if you guys really wanna make a big deal of 2-3%...how about the fact the iPhone 6S is only 2-3% better than last years model. Why not make a big deal out of that. Apple can drop Samsung. Who cares. Samsung is making chips for themselves, Qualcomm and Huawei and others. And look at you Alik...just riding this train until it crashes. If you were driving 70mph and decided to go 2-3% slower, without looking at the speedometer, would you even notice? NO.

31. AlikMalix unregistered

Techie you and others are so freaked predictable. Line sank, and bait working. I actually don't care for the 3%. I was just riding that old train where everyone claimed that Samsung is the God of manufacturing when it looks like they're just a manufacturers with bigger square foot warehouse. I don't think Apple is dropping Samsung, it needs it as much as Samsung needs Apple. We heard news of Apple dropping Samsung before, guess what - didn't happen then, wouldn't happen now Just throwing some logs to a fire (or trolling a little if u wanna call it), but man you guys do travel in packs.

37. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I never saw anyone say Samsung is the God of manufacturitng, but tgey are one of the best and have the best yields with only Intel being superior. But that doesnt make them a god. What it does make them is the best mobile chip fabricator on the planet. But that doesnt make them a god of anything. With all that money Apple has, why can't they make their own chips. Everything in the iPhone beyond its design is done by 3rd parties. You must care about the 3% because you keep hackign away at it. I personally just dont see the issue here. if the difference was outside tolerances for manufacturing, then yes Samsung would be in trouble. But fact is, if it was that high; Apple wouldnt even be using the chip in the first place until it reach level within their specific tolerances.

16. XperiaFanZone

Posts: 2278; Member since: Sep 21, 2012

If you're gonna troll, at least make sure you don't get humiliated.

21. darkkjedii

Posts: 31284; Member since: Feb 05, 2011

Good post Alik! These simple, no life having trolls can bark all they want, but Samsung does not want to lose Apple. Who cares my ass. +1 bro.

34. AlikMalix unregistered

Actually there's more truth to your post then you might realize. Samsung is so dependent on Apple that it took lower prices that Apple dictated just to keep their business. I'd say that's a good move on samsungs part - but Apple is bitchslapping Samsung around (it's gonna make haters hate Apple even more, lol).

36. darkkjedii

Posts: 31284; Member since: Feb 05, 2011

100% agreed.

41. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Of course you would...you both think alike. I read somewhere that bad association spoils useful habits.

43. darkkjedii

Posts: 31284; Member since: Feb 05, 2011

See post 23.

39. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung is dependent on Apple..? Seriously? When you have a bottom line to keep up and stockholders to keep happy, you do business how you need it. They may have just did what you said, but since Samsung is producing the biggest number of the chips, they still are going to make plenty of money. Do you know if what you said was fact? Do you know how much money is involved? Example. Apple could have said, we don't want to pay $5.00 per chip we want to pay $4.00. Samsung says DEAL...because the difference is no big dealand can easily be made up somewhere else. But if Samsung was maybe charge 50.00 per chip and APple says we only wanna pay 10.00, then Apple would simply be screwing themselves. That fact is bro, Apple needs Samsung for several reasons..A- No one can yield enough product to keep up with Apple's demand which is why Apple cant ditch Samsung. I live for the day Samsung doesn't make anything for Apple. Because facts have shown, Apple products that tried to move away from Samsung components have had the largest failures and that is provable fact. I saw all the stories about the Mac's hard drives made by Toshiba has high failure rates vs drives made by Samsung, It was so bad that customers requested the drives be replaced with Samsung hardware. WHO NEEDS WHO CRAZY MAN? But being better doesn't mean you can have missteps. Apple has made plenty. 892million worth of missteps recently.

45. AlikMalix unregistered

If you're gonna comment on my intelligence regarding Apple and Samsung relationship, you should read all my posts (scroll down or go back a few weeks of posts). I do believe that Apple still need Samsung, but it's a two way street and Samsung does need Apple. And your last post, first it's out of context, second if Apple infringed - they should pay. I'm not Apple, and your not going to offend me by posting links where Apple screwed up - I'm a fan - you'd think I know all about it, don't you think.

54. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Ah. Return of the Jedi. We been over ran with sith trolls. Glad your back.

55. darkkjedii

Posts: 31284; Member since: Feb 05, 2011

Lol right on!

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.