Bloomberg is reporting that Taiwan Semiconductor Manufacturing Co. (TSMC) has told both Apple and Qualcomm to take a hike when the companies separately offered the chip supplier cash to invest in their expanding business.
"Both proposals included investments, each of more than $1 billion, for the world’s largest custom maker of chips to set aside production dedicated to making chips exclusively for them," the report reveals, quoting unidentified "people with knowledge of the matter."
Mobile is where the growth is, so it's no surprise that both Apple and Qualcomm have come knocking on the door of TSMC, who reportedly "wants to retain control of its plants, doesn't want to sell part of itself and doesn't need cash for investments," according to chief financial officer Lora Ho in a July 19 interview.
"Apple and Qualcomm are trying to improve their position in a supply chain where a shrinking number of companies are capable of churning out the millions of parts needed to meet surging smartphone demand," the report concludes. "As they become more like computers, the advanced mobile phones need more sophisticated processors made with the latest production technology."
TSMC is currently Qualcomm's biggest supplier according to Bloomberg data, but the company appears to be keeping all of its options open for now -- probably a smart move considering the mobile chip market is expected to explode even bigger in the years ahead.
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