Apple TSMC: Did This Apple Supplier Hit it Big?

Apple TSMC: It is safe to say that any contract with Apple Inc. (NASDAQ:AAPL) is a good contract. A company that finds itself on Cupertino’s supply chain is one that is doing something right.

Of course, this is a fine line to walk. Any company that puts too much stock into its business with Apple can be hurt if the company runs into hard times or decides to make a change in the future.

If a report by DigiTimes is accurate, one supplier is looking to cash in big with its relationship with Apple Inc. (NASDAQ:AAPL).

They are reporting that TSMC has been awarded 100 percent of Apple AP orders for its 2014 iPhone.

Is this a risk for TSMC? Is this a risk for Apple? The answer is yes for both.

The article goes on to say that “Apple is expected to contract TSMC to manufacture all the application processors (APs) used in the 2014 model of its iPhone slated to launch in the second half of the year.”

If true, this is a pretty big commitment from Apple Inc. (NASDAQ:AAPL). If nothing else, it shows that the tech giant has supreme confidence in TSMC and its ability to get the job done no matter what it takes. After all, any delay in the supply chain could push back shipments which would subsequently impact both consumers as well as the company’s stock price.

There is one question that need to be answered at this point: how is TSMC going to handle all this new business? Are they currently equipped to do so?

The sources, not named by DigiTimes, add that “to satisfy the huge demand from Apple, TSMC has begun equipment move-in for the phase-5 facility of its 12-inch fab located in southern Taiwan.”

Right now, Samsung is staffed with manufacturing Aps for the existing Apple Inc. (NASDAQ:AAPL) iPhone. However, tensions between the two companies, both competitively speaking and in the courtroom, have forced them to begin parting ways. However, the same article notes that Samsung may still be on board to “manufacture chips for the upcoming model scheduled to be released in the second half of 2013.”

Is this crazy or true? Is it possible that Apple Inc. (NASDAQ:AAPL) is giving all this business to TSMC as far as production for its 2014 iPhone is concerned? It may be too early to tell right now, but people are beginning to talk already.

For more info on what the next iPhone may offer, check out the video on the following page: