Apple A12 and Snapdragon 700 Chip Production May Lead TSMC to Earn Record Profits in 2018 After All

by

Last week, Apple supplier TSMC saw its shares decline around nine percent after it cut its full-year revenue growth target to 10 percent, compared to its previous 10-15 percent estimate. The manufacturer blamed the cut on lower-than-expected smartphone demand and growing uncertainty in the cryptocurrency mining market.


Apple's stock also declined around four percent on Friday, as many analysts equated the slowing smartphone demand with poor or declining sales of the iPhone X, which has an A11 Bionic chip fabricated by TSMC, in the second quarter.

Now, a report from DigiTimes suggests that TSMC may post better-than-projected revenues and profits in 2018 after all, as it gradually ramps up volume production of so-called A12 chips for Apple's next-generation iPhone lineup. The wafers are expected to be manufactured based on TSMC's advanced 7nm process.

The sources said that TSMC will see its revenue ratio for advanced 7nm process hit a high of 20 percent in 2018, and may therefore post better-than-projected revenues and profits for the second half of the year and register an annual revenue growth of over 10 percent.

TSMC may also benefit from Qualcomm's decision to roll out its new Snapdragon 700 series processors in May, ahead of schedule, according to the report. Qualcomm has allegedly grabbed significant orders from non-Apple smartphone vendors and will have TSMC fabricate the chips in the second half of the year.

The report is questionable given that TSMC presumably factored in production of A12 chips into its revenue guidance last week, but the better-than-projected revenues could rest more on the Qualcomm portion of the news.

How much money TSMC makes is a data point that Apple analysts often attempt to interpret in order to gauge iPhone sales. A constant flow of reports have claimed iPhone X sales have significantly declined following the device's late 2017 launch quarter, but Apple has yet to disclose any official figures.

Apple will report its second quarter earnings results on Tuesday, May 1, including how many iPhones it sold during the January-March period, but it doesn't provide a model-by-model breakdown of sales. Apple reported record-breaking revenue of $88.3 billion and 77.3 million iPhone sales in the first quarter.

Top Rated Comments

(View all)
Avatar
29 months ago
Yeah okay. Just make your software better so we can actually feel the full benefits of these chips. An iPhone 8 doesn’t really run that much faster than an iPhone 6S. I don’t really care about some numbers on a geekbench, doesn’t impress me as much anymore.
Score: 7 Votes (Like | Disagree)
Avatar
29 months ago
A12: So powerful, you need a new battery in less than 12 months.
Score: 5 Votes (Like | Disagree)
Avatar
29 months ago
I think it’s time we get 0% improvement in speed but use all the efficiencies of the new manufacturing process for battery life gains.

Who’s with me? :D
Score: 4 Votes (Like | Disagree)
Avatar
29 months ago

Last week, TSMC lowered their revenue guidance due to soft demand for a “very high end smartphone” according to the CEO.

TSMC bet on iPhone X and lost. I really doubt Digitmes knows more than TSMC themselves and this far ahead of time.

How do we now it’s the X and not the Samsung 9, which by all accounts is a soft seller?
Score: 2 Votes (Like | Disagree)
Avatar
29 months ago

Last week, TSMC lowered their revenue guidance due to soft demand for a “very high end smartphone” according to the CEO.

TSMC bet on iPhone X and lost. I really doubt Digitmes knows more than TSMC themselves and this far ahead of time.

Absolutely ridiculous. The iPhone 8/8P also use the A11 processor. Apple posted record sales the previous quarter (Q1 2018) and their guidance is for a record breaking Q2 2018 as well. There’s no “soft demand” for the A11.
Score: 2 Votes (Like | Disagree)
Avatar
29 months ago
Last week, TSMC lowered their revenue guidance due to soft demand for a “very high end smartphone” according to the CEO.

TSMC bet on iPhone X and lost. I really doubt Digitmes knows more than TSMC themselves and this far ahead of time.
Score: 2 Votes (Like | Disagree)

Top Stories

Apple Warns Against Closing MacBooks With a Cover Over the Camera

Friday July 10, 2020 11:12 am PDT by
Apple this month published a support document that warns customers against closing their Mac notebooks with a cover over the camera as it can lead to display damage. Image via Reddit Apple says that the clearance between the display and the keyboard is designed to very tight tolerances, which can be problematic. Covering the camera can also cause issues with automatic brightness and True Tone....

iPhone Users Who Experienced 'Batterygate' Can Now File to Receive Around $25 Settlement From Apple

Monday July 13, 2020 6:50 am PDT by
Earlier this year, Apple agreed to settle a U.S. class action lawsuit that accused the company of "secretly throttling" older iPhone models. Now, eligible iPhone owners are beginning to be notified about their legal rights and options. Under the proposed settlement, Apple will provide a cash payment of approximately $25 to each eligible iPhone owner who submits a claim, with its total payout ...

Possible 'iPhone 12' Battery Certifications Suggest Lower Capacities Than iPhone 11 Series

Monday July 13, 2020 4:22 am PDT by
MySmartPrice has spotted certifications for three new Apple batteries that it believes could be for the upcoming iPhone 12 lineup, despite them being less capacitive than the batteries in the current iPhone 11 series. The batteries are identified with the model numbers A2471, A2431, and A2466, and appear on Safety Korea, China's 3C, and the Danish agency UL Demko. Apple is expected to...

Google to 'Dramatically' Improve Chrome Impact on Mac Battery Life

Sunday July 12, 2020 1:56 pm PDT by
Google will address long-standing battery life issues, particularly on Mac devices, reports The Wall Street Journal. Chrome will improve "tab throttling" by better prioritizing active tabs and limiting resource drain from tabs open in the background. This is said to have a "dramatic impact on battery and performance." Google has reportedly been performing early tests on Mac laptops in...

Arm-Intel-PowerPC Universal Binaries Are Possible

Saturday July 11, 2020 1:42 pm PDT by
Casual MacRumors visitors may not realize that we have a very active PowerPC forum where users discuss issues related to PowerPC Macs that have not been produced since 2006. Threads range from hardware upgrades and software options to nostalgia: Photo by AphoticD Apple's recently announced transition to Apple Silicon (Arm) based Macs raised some interesting questions about future support...

Apple Pays Samsung an Estimated $950 Million for Missing OLED Panel Purchase Targets

Monday July 13, 2020 10:03 am PDT by
Apple in the second quarter of 2020 paid Samsung approximately $950 million for not meeting OLED panel purchase goals established in agreements between the two companies, according to display analysts at Display Supply Chain Consultants. Samsung last week shared guidance on revenue and operating profit for the second quarter of 2020, which included a one-time gain related to its display...

Apple Shares Humorous 'Working-From-Home Thing' Video

Monday July 13, 2020 9:31 am PDT by
Apple today shared a funny video focused on the problems that people working from home have to deal with, including noisy children, chaotic schedules, communication issues, and more. The video focuses on showing off Apple products and their capabilities that can be useful when working from home, such as the ability to scan a document with an iPhone, mark up a PDF, Siri Reminders, and more.The...

SoftBank Considering Possible Sale of Arm Holdings as Apple Gears Up for Arm-Based Macs

Monday July 13, 2020 2:00 pm PDT by
SoftBank, the company that owns chip designer Arm Holdings, is exploring options that include a full or partial sale or a public offering, reports The Wall Street Journal. SoftBank is working with Goldman Sachs Group as an advisor, and the explorations are at an early stage. The Wall Street Journal says that it's unknown how much interest there would be in Arm from financial or industry...

Rumor Suggests New Apple App for Windows Could Be Coming Soon

Tuesday July 14, 2020 1:54 am PDT by
Apple could be working towards the release of a new app for Windows 10, according to a report this week from an Italian website. The blog Aggiornamenti Lumia suggests that an app from Apple is "coming soon" to the Microsoft Store, but stops short of providing additional details. Apple still maintains a Windows version of the iTunes app, which has been discontinued on Mac and replaced by...

Deals: Amazon Taking $400 Off 16-Inch MacBook Pro, Starting at New Low Price of $1,999.99 for 512GB

Monday July 13, 2020 5:34 am PDT by
Amazon has introduced a new low price on Apple's 16-inch MacBook Pro today, including both 512GB and 1TB models. Starting with the 512GB model (2.6GHz 6-Core, 16GB RAM), you can get this notebook for $1,999.99, down from $2,399.00. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running....