Message says Qualcomm plans to transfer part of TSMC's processor order

"Qualcomm is considering moving some of its mobile application processor orders from TSMC (16.82,0.02,0.12%) to other OEM vendors," Digitimes, the Taiwanese electronic times, said in Monday, citing people familiar with the news, Sina Science and Technology reported in Beijing late August 5. Qualcomm's move is aimed at compressing costs and increasing price competitiveness, which helps Qualcomm maintain and increase its share in China and other emerging markets, the person said. Qualcomm has been one of TSMC's biggest customers, the source said, with up to 170 million orders per quarter for mobile application processors. There is no doubt that this will adversely affect TSMC. As early as the early 2012, there was speculation in the market, TSMC was unable to meet all 28 of nano-chip processing chips orders, leading Qualcomm and other major customers began to consider other generations of business. But at that time, because the other OEM manufacturers of the 28 nano-technology is not very mature, these big customers have to continue to work with TSMC. Today, however, the 28 nm process of other foundry companies has matured and even offered a more attractive price advantage than TSMC. Qualcomm is currently facing strong challenges from China IC design companies such as MediaTek, 29.91,-0.09,-0.30% and RDA Microelectronics. Turning a portion of the 28-chip order to other OEM companies would help lower the cost of high throughput, the person said. (Li Ming)