According to a new supply chain report, TSMC snapped up new orders from Apple for SSD controller chips. The report notes that TSMC inaugurated the commercial run of its 28nm process about five years ago and now accounts for over 75% of the global 28nm foundry market. In addition, the 28nm products also contributed 30% to TSMC's total revenues in 2014.

The first wave of demand for the 28nm capacity was triggered by rising demand for application processors from the smartphone and tablet sectors, with clients including Qualcomm, MediaTek, Apple and Nvidia flocking to TSMC for foundry capacity.

While clients from the mobile device sector will continue to fill TSMC with 28nm orders in 2015, a take-off of the SSD (solid state drive) market expected in the year is likely to give another boost to demand for 28nm capacity.

The reason is that the production of controller chips for SSDs is to officially migrate into the 28nm process in 2015, and TSMC has an advantage to solicit more orders from SSD vendors due to its superiority in the 28nm process.

The report further noted that "TSMC has reportedly snapped up SSD controller chips orders from Marvell Technology, Phison Electronics and more recently from Apple. Thus, TSMC will see its share in the 28nm process market remain high and contribution of the 28nm products to its sales further increase in 2015."

By: DocMemory
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