The Apple (NASDAQ:AAPL) Chip

603

By Hanson So on October 10, 2014 Company

Apple (NASDAQ:AAPL) is one of the major contenders in the tech world and ever since its existence, has had its fair share of speculations and criticism. After the 2014 Apple (NASDAQ:AAPL) products launch, several features such as the model, features, dimensions, demand and supply went through various phases of evaluation. Quite recently, the A8 chip has undergone several speculations. At the launch ceremony of the new Apple (NASDAQ:AAPL), there were several questions raised on the matter of the A8 contracted manufacturer. The answer from Chipworks analysts has revealed that Taiwan Semiconductor (NYSE:TSM) is the manufacturer.

Samsung (OTC: SSNLF), an old player in the market was expected to take the deal. However, in comparison to Samsung (OTC: SSNLF) that builds the chips on 14 nanometer technology; Taiwan Semiconductor will build these chips with their 16 nanometer technology. But in case of Apple (NASDAQ:AAPL), a 20 nanometer chip is required for the A8 processor inside iPhone 6 and 6 Plus. While Samsung (OTC: SSNLF) has claimed that it has been contracted to provide the 14 nanometer FinFET chips to Apple (NASDAQ:AAPL).

The big name in the market Intel (NASDAQ:INTC), known for its “tick tock” methodology has been adopted by Apple (NASDAQ:AAPL) for years. “Tick tock” is a development strategy in which, when a chip design is in transition cycle it’s referred to as ‘tick’ and when the design is completely new, it’s called ‘tock’.

Apple (NASDAQ:AAPL) has always been very keen on newer and faster technologies. Considering the Apple (NASDAQ:AAPL) devices, it’s quite evident that Apple (NASDAQ:AAPL) started off with Samsung 45nm node but quickly advanced onto 32nm, 28nm and 20nm nodes. It’s predicted that 20nm node will be Apple (NASDAQ:AAPL)’s selection for the A9.

But looking into past revelations by TSMC’s then CEO Morris Chang 2013, it seems that the 16 FinFET + technology is a better option for Apple (NASDAQ:AAPL) as compared to the 20 SoC technology that Apple (NASDAQ:AAPL) is already in use. FinFET promises improvement in performance and power consumption, as a performance boost of 40 percent is expected along with 60 percent power saving. Apple (NASDAQ:AAPL) is known to use the best technologies in all its devices, hence its easily anticipated of Apple (NASDAQ:AAPL) to undergo a transition and produce better performance results for its next iPhone.

At this point, the contract might go to either Samsung or Taiwan Semiconductor, depending on which of the two can deliver on time for the new iPhone. Otherwise Apple (NASDAQ:AAPL) is expected to improve on the existing 20 nanometer.

Year after year, Apple (NASDAQ:AAPL) has aimed to deliver newer, faster and innovative ways to improve its models and devices, in terms of hardware, software, chip and other features. Every year, the loyal Apple (NASDAQ:AAPL) customers anxiously wait for new releases from their favorite brand. To date Apple (NASDAQ:AAPL) has always succeeded in meeting customer expectations. This year is not expected to be any different as Apple (NASDAQ:APPL) plans to use the latest technology and innovative features to uphold their market stature.