Canaccord Genuity Morning Coffee on Apple (AAPL), Qualcomm (QCOM) and Taiwan Semiconductor (TSM): Thanks, but No Thanks
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Price: $309.35 -0.63%
Rating Summary:
45 Buy, 28 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
45 Buy, 28 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Apple (Nasdaq: AAPL), Qualcomm (Nasdaq: QCOM) and Taiwan Semiconductor (NYSE: TSM): Thanks, but no thanks.
Apple and Qualcomm have both been rejected in separate attempts to invest in Taiwan Semiconductor Manufacturing Co (TSMC) as they look to secure exclusive access to smartphone chips. Both proposals, which were over $1 billion, were seeking dedicated production according to sources close to the matter. A deal with TSMC would also give Apple an alternative supplier to Samsung, who currently builds the main chip used in the iPod and iPad. Qualcomm is looking to boost its supply as shortages have began to have a negative impact on earnings. TSMC has said that it wants the flexibility to switch its production between different products and customers, which include Broadcom (Nasdaq: BRCM) and Nvidia (Nasdaq: NVDA) in addition to Apple. CFO Laura Ho said TSMC wants to retain control of its plants, is not interested in selling itself and currently does not require cash for investments. She went on to say that dedicating one facility to a single product or customer could become a risk if a product, client or technology changes. With TSMC seeming to be out of the picture, it looks like Apple will have to play nice with Samsung as a supplier for now, despite their ongoing patent disputes.
Apple and Qualcomm have both been rejected in separate attempts to invest in Taiwan Semiconductor Manufacturing Co (TSMC) as they look to secure exclusive access to smartphone chips. Both proposals, which were over $1 billion, were seeking dedicated production according to sources close to the matter. A deal with TSMC would also give Apple an alternative supplier to Samsung, who currently builds the main chip used in the iPod and iPad. Qualcomm is looking to boost its supply as shortages have began to have a negative impact on earnings. TSMC has said that it wants the flexibility to switch its production between different products and customers, which include Broadcom (Nasdaq: BRCM) and Nvidia (Nasdaq: NVDA) in addition to Apple. CFO Laura Ho said TSMC wants to retain control of its plants, is not interested in selling itself and currently does not require cash for investments. She went on to say that dedicating one facility to a single product or customer could become a risk if a product, client or technology changes. With TSMC seeming to be out of the picture, it looks like Apple will have to play nice with Samsung as a supplier for now, despite their ongoing patent disputes.
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