TSMC was replaced by Samsung

TSMC Chairman Zhang Zhongmou

July 17, according to analysts and Taiwanese media, said TSMC is likely to lose orders for chips from Apple and Qualcomm, replacing it with its rival Samsung Electronics.

After TSMC shareholders' meeting, Michael Liu, an analyst at KGI Securities, said in an investor study released late Wednesday that TSMC will be replaced by Samsung from 2015 Six months to produce 14-nanometer smart phone chips for Apple and Qualcomm.

According to market speculation, Qualcomm has begun to cooperate with Samsung to develop the chip. According to informed sources, Qualcomm has already issued an order to Samsung.

Affected by the above news, TSMC fell 4.6% in early trading Thursday, while the broader market index fell only 1%.

TSMC, the world's largest chip foundry, reported Wednesday its quarterly profit hit its highest level since late 2006 and expects the company's revenue growth to reach a record 20% this year.

Market observers believe that the main reason investors are optimistic about the prospects of TSMC is that it has stepped up cooperation with Apple.

Apple recently reached an agreement with TSMC to hand over most of the chips for the iPhone 5 follow-on products to TSMC rather than Samsung.

TSMC chairman Zhang Zhongmou said at an investor conference that TSMC will have less share in the 16-nanometer chip market next year than the other major competitors, but will regain the share of market leader in 2016 again. (Lin Jingdong)