Apple’s A10 Chip Could Lead to a Record Third Quarter Revenue for TSMC

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Despite a slowdown in iPhone sales, many analysts expect TSMC’s revenues to soar in the third quarter of this year thanks to the rising shipments of Apple’s A10 chip. The chip will be used by Apple inside its upcoming iPhone 7 and iPhone 7 Plus handsets.

The company is now expected to hit record revenue levels of $7.14 billion to $7.45 billion in the third quarter.

The news originates from a report from Commercial Times which states that Apple will also be using TSMC’s in-house developed backend integrated fan-out (InFO) wafer packaging. The upcoming iPhones are said to come with a new type of EMI shielding to reduce electromagnetic interference from other components on the mainboard.

TSMC lost the majority orders for the A9 chip being used by Apple inside the iPhone 6s to Samsung, but for the A10, the company is once again expected to supply Apple with the majority of the chips.

Almost all other suppliers have seen a reduction in their orders from Apple and a fall in their revenues due to a slowdown in iPhone sales, but TSMC has somehow managed to buck that trend. It will be interesting to see what impact this has on Samsung’s chip business that managed to post a healthy profit last year after bagging the majority supply of A9 chips.

[Via DigiTimes]