Apple Inc’s decision to stop using Intel Corp processors in its Mac computers and switching to its own chips might benefit Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and boost Taiwan’s high-tech exports, Australia and New Zealand Banking Group (ANZ) said in a note on Tuesday.
The US tech giant announced the “Apple silicon” initiative at its annual Worldwide Developers’ Conference, which started on Monday.
The company said the first Mac powered by its own chips would debut by the end of this year and all product lines might shift to the new architecture in the next two years.
TSMC is likely to manufacture these new chips based on its 5-nanometer process technology, ANZ said, adding that Apple currently procures from TSMC’s nine fabs in Taiwan and one in the US.
“We believe this decision will boost Taiwan’s investment and high-tech export outlook in the coming months and that Asia would remain critical to Apple’s global supply chain,” ANZ said.
TSMC is already working with Apple on the first 5-nanometer chip for new iPhone models that are expected to be launched later this year and Taiwan is expected to play an integral role in the rollout of new Macs going forward, ANZ said.
Macs account for about 10 percent of Apple’s annual revenue, while iPhones contribute nearly 55 percent, it said.
Apple’s top 200 suppliers accounted for 98 percent of its procurement last year.
The US company’s supply chain extends to more than 28 countries and areas, with the top five — Taiwan, China, Japan, South Korea and the US — accounting for nearly 83 percent of the input, ANZ said.
Nearly half of Apple’s manufacturing sites are in China, but the majority of its key suppliers are Taiwan-based firms, it said.
Yuanta Securities Investment Consulting Co (元大投顧) is positive about the outlook for Mac supply.
“Apple silicon promises to bring a new competitive landscape to the notebook industry, and we view it as a milestone for Apple in terms of exerting further control over notebook applications under its own ecosystem,” Yuanta said in a note on Tuesday.
“If Apple can finally prove its processors can really offer better performance with lower power consumption and are even easier to link with the iPhone and the iPad, it may be able to further increase the MacBook’s market share,” it said.
Yuanta said it favored select Taiwanese suppliers to Apple, such as Catcher Technology Co (可成科技), Radiant Opto-Electronics Corp (瑞儀光電), Parade Technologies Ltd (譜瑞科技), Taiwan Surface Mounting Technology Corp (台灣表面黏著科技), Flexium Interconnect Inc (台郡科技), Global Lighting Technologies Inc (茂林光電), FitTech Co (惠特科技) and TSMC.
Additional reporting by staff writer
WIN-WIN SITUATION: Customers, products and client portfolios of the companies are complementary, allowing for inroads into new fields, Chipbond’s chairman said Chipbond Technology Corp (頎邦) yesterday said it plans to acquire about a 31 percent stake in Orient Semiconductor Electronics Ltd (華泰電子) in a cash-and-share deal, aiming to make inroads into flash memory-chip packaging. Chipbond said the strategic alliance would open the door for the company to enter the flash memorychip packaging and testing market, which is a new business for the Hsinchu-based company. Chipbond primarily provides testing and packaging services for driver integrated circuits that are used in flat panels. BUSINESS OPPORTUNITY “Except for flash memory chips, we also saw a lot of new businesses that require the technologies of Chipbond or Oriental
MOMENTUM: While next-generation smartphones feature more semiconductors and vendors increase their inventory, the chipmaker remains focused on production in Taiwan Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the sole chip supplier for Apple Inc’s iPhone series, yesterday raised its revenue forecast again, saying that robust demand for 5G smartphones and high-performance-computing (HPC) would help boost revenue this year by 30 percent in US dollar terms. Three months ago, the chipmaker estimated that revenue would grow 20 percent this year from last year, reaching its long-term growth target of 15 to 20 percent annually. “Moving into the fourth quarter, we expect our growth in revenue to be supported by strong demand for our industry-leading 5-nanometer technology driven by 5G smartphone launches and HPC-related applications,”
Luxury hotel Mandarin Oriental Taipei (文華東方酒店) plans to reopen its guestrooms in December to take advantage of a boom in domestic travel. The reopening would come six months after the five-star facility suspended room operations to cut costs as countries across the region impose border controls to contain the COVID-19 pandemic, diminishing demand for business travel. “We are delighted to share that Mandarin Oriental Taipei will resume room operations on December 1,” the hotel said in a statement yesterday. The hotel in Songshan District (松山) said it would adopt stringent health and safety practices to ensure the well-being of its guests and employees. It
India’s COVID-19 economic gloom turned into despair this week, on news that its per capita GDP for this year might be lower than that of Bangladesh. “Any emerging economy doing well is good news,” Kaushik Basu, a former World Bank chief economist, said on Twitter after the IMF updated its World Economic Outlook. “But it’s shocking that India, which had a lead of 25% five years ago, is now trailing.” Ever since it began opening up the economy in the 1990s, India’s dream has been to emulate China’s rapid expansion. After three decades of persevering with that campaign, slipping behind Bangladesh hurts