Chip suppliers are expected to begin to pull in orders for wafers in order to produce chips for non-Apple device vendors, a move which is likely to start a new round of competition for wafer capacity, according to industry sources.
Most wafer foundry houses, particularly Taiwan Semiconductor Manufacturing Company (TSMC), have been running nearly at full capacity since the beginning of 2014 as they have to ramp up output to meet demand from non-Apple device vendors in the first half of the year before related Apple suppliers begin to pull in orders in the second half.
Even though the fourth quarter is traditionally an off-peak season for wafer houses, Apple-device suppliers have continued to line up at TSMC for capacity due to strong demand for Apple products, the sources noted.
Meanwhile, chip suppliers have also begun to renew their orders at wafer houses as non-Apple device vendors are ready to launch new models for the fourth quarter of 2014 as well as for the first half of 2015, added the sources.
The tight production capacity at TSMC will not ease until the second half of 2015 when the foundry house begins to ramp up its 20nm process products, or until demand for new iPhone 6 devices starts dwindling, the sources commented.
