TSMC Refuses Investments From Apple and Qualcomm to Secure Production

Taiwan Semiconductor Manufacturing Co. has reportedly refused bids from both Apple and Qualcomm to invest in the company and secure exclusive access to smartphone chip production.

Both proposals included investments, each of more than $1 billion, for the world's largest custom maker of chips to set aside production dedicated to making chips exclusively for them, said the people, who declined to be identified because the details are not public.

Apple is thought to be looking for an alternate supplier to Samsung and Qualcomm needs to boost supplies so earnings aren't limited. TMSC says it wants the flexibility to switch its production lines for different customers and products although they are willing to devote one or even two factories to a single customer.


"Currently we believe we still can fund it," Chief Financial Officer Lora Ho said in an interview. TSMC wants to retain control of its plants, doesn't want to sell part of itself and doesn't need cash for investments, said Ho.

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Morris Chang, CEO of TSMC