Business

Apple's choice of chips is major factor influencing global chip biz

Apple, a company known for its high level of innovation in electronics design and manufacturing is playing key role in semiconductor chip market. Some of its smart semiconductor choices/options causing significant impact on the overall chip market. Apple is the world's largest fabless chip design company, among those which use the chips only for internal use. Apple uses semiconductor IP from companies such as ARM and designs its own complex SoCs for its iPhones and iPads. Apple was highly relying on Samsung's chip fab to get its ICs manufactured. To save itself from the risk of one vendor, There are reports of Apple placing big order of chips-manufacturing to TSMC for use in its new range of iPhones and other portable devices. TSMC which is having a good list of super customers for its advanced fab including Apple, is going to increase its share in pure-play foundry business. The other pure play foundry businesses are also expected to grow better than the semiconductor industry average in 2013. By observing all this, IHS has forecasted pure-play semiconductor foundry market revenue is forecasted to rise by 21 percent compared to 2012 by the end of 2013. This level of growth is not going to be seen in the overall semiconductor market, as per IHS. IHS estimates the overall semiconductor industry will expand by a more staid 5 percent. The pure-play foundry industry is esti...
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