Taipei, Sept. 28, 2012 (CENS)--VIS Inc. has reportedly requested Dialog Semiconductor and Cirrus Logic, Apple's long-term suppliers of power management ICs and audio ICs, to distribute some foundry contracts to Vanguard International Semiconductor Corp. (VIS) as another foundry source.
Industry executives pointed out that fearing disorder might happen to its supply chain because of unexpected supply suspension at one suppler, Apple has in recent years asked its components suppliers to spread contract manufacturing sources. Some interpret supplier diversification as Apple's scheme to expel Samsung out of its supply chain in light of intense lawsuit wars between the two companies.
VIS, an affiliate of Taiwan Semiconductor Manufacturing Co. (TSMC), enters Apple's supply chain for the first time.
TSMC has been the foremost contract manufacturer of iPhone wireless chips from vendors, including Qualcomm, Broadcom and Cambridge Wireless. TSMC Chairman and Chief Executive Officer (CEO) Morris Chang ever said Apple is a very important "indirect customer" to his company.
Dialog and Cirrus Logic have depended TSMC for contract manufacturing of their chips on 200mm wafers using 0.18nm process. Industry executives felt that VIS is chosen by the two companies as another contract supplier for the closeness of the process between VIS and TSMC, enabling them to minimize the cost in process adjustment.
Contracts from Dialog and Cirrus Logic are estimated to help boost VIS' revenue from 0.18nm process to 33% at yearend from first quarter's 27% of its total revenue.
Thanks to brisk smartphone market in mainland China, VIS has so far this quarter received robust contacts for drive ICs used on touch screens of the phones.
