Taiwan Semi (TSM) Turns Down Substantial Bids from Apple (AAPL), QUALCOMM (QCOM) for Chip Exclusivity
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Apple (Nasdaq: AAPL) and QUALCOMM (Nasdaq: QCOM) are coming off of lows Wednesday amid reports the duo couldn't lock-down exclusivity to Taiwan Semi (NYSE: TSM) smartphone chips.
According to Bloomberg, Apple and QUALCOMM offered about $1 billion each to have TSM produce chips exclusively for them.
For Apple, it means relying less on peer Samsung, which builds the main chip in its iPhone and iPad. For QUALCOMM, it means being able to meet demand as inventories dwindle on strong global demand.
However, given that TSM supplies to Broadcom (Nasdaq: BRCM), NVIDIA (Nasdaq: NVDA), and others, it rebuffed the offer to keep "flexibility" in its manufacturing process. Last month, TSM Chairman Morris Chang said he was willing to devote one or two plants to a single company if demand warranted it, but isn't looking to sell part of itself or garner cash for investments.
Apple shares are down about 0.1 percent while QUALCOMM is down 0.2 percent in late morning trading.
According to Bloomberg, Apple and QUALCOMM offered about $1 billion each to have TSM produce chips exclusively for them.
For Apple, it means relying less on peer Samsung, which builds the main chip in its iPhone and iPad. For QUALCOMM, it means being able to meet demand as inventories dwindle on strong global demand.
However, given that TSM supplies to Broadcom (Nasdaq: BRCM), NVIDIA (Nasdaq: NVDA), and others, it rebuffed the offer to keep "flexibility" in its manufacturing process. Last month, TSM Chairman Morris Chang said he was willing to devote one or two plants to a single company if demand warranted it, but isn't looking to sell part of itself or garner cash for investments.
Apple shares are down about 0.1 percent while QUALCOMM is down 0.2 percent in late morning trading.
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