It seems like Taiwan Semiconductor Manufacturing Company could soon be facing stiff competition from Intel. The company has announced early this month that it has finally acquired a licensing deal with the British mobile chip designer, ARM.
According to reports, Intel will start shipping ARM-based mobile processors as early as 2018. Apple and Intel have also initiated talks about the possibility of supplying the next ARM-based processors for Apple?s mobile products. However, LG will be the first to offer Intel-manufactured ARM mobile processors, the same report said.
Last year, 16 percent of TSMC?s revenue was based on orders from Apple. This year, it is expected to go up to around 20 percent. TSMC currently dominates 55 percent of the global mobile phone market. With Intel?s license to manufacture ARM-based processors, the company is in for a tough competition starting 2018.
According to analyst Samuel Wang from research company, Gartner:
“TSMC could face tough competition as soon as 2018 or 2019 as Intel is likely to gain orders from Apple by then. Intel has begun to engage with Apple and it aims to grab one or two top-tier customers from TSMC.?
Based on revenue, Intel?is the world?s largest chip manufacturer. The company?s decision to enter the mobile phone market is possibly brought by the recent decline in the PC market. This supposed deal between Intel and Apple could prove to be very beneficial for both companies. It means another avenue for income to explore. While for Apple, it might use this opportunity to further the deal on its other products. Consumers could be looking at cheaper iMacs, MacBooks, MacBook Airs, and MacBook Pros in the next couple of years.
Apart from being one of the biggest names in semiconductor manufacturing, the Santa Clara, California chip manufacturer also boasts a very long history of innovation. The company also has all the resources, from design, to assembly, and testing, that it can use to further improve the current mobile processor technology.
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