TSMC Said to Win Contract for Larger IPad Processor

Taiwan Semiconductor Manufacturing Co., the world’s largest contract manufacturer of chips, won an agreement to supply a second processor for Apple Inc., according to a person familiar with the matter.

Production of the A8X processor for a larger iPad follows TSMC’s current contract to make the A8 used in the iPhone 6 and iPhone 6 Plus, the person said, asking not to be identified because the details aren’t public. Elizabeth Sun, a spokeswoman for Hsinchu, Taiwan-based TSMC declined to comment on the company’s clients. Carolyn Wu, a Beijing-based spokeswoman for Apple, declined to comment.

Apple suppliers are preparing to make the company’s biggest iPad, with a 12.9-inch screen to be introduced next year, people familiar with the plans have said. Winning a second Apple processor order gives TSMC a boost amid increasing competition from Samsung Electronics Co., previously the only supplier of Apple’s main smartphone and tablet chips.

TSMC today forecast fourth-quarter sales will be a record NT$217 billion ($7.1 billion) to NT$220 billion, beating the NT$212.6 billion average of 25 analyst estimates compiled by Bloomberg.

TSMC’s contract for the A8X was reported yesterday by Digitimes.

Apple currently produces iPads with 9.7-inch and 7.9-inch displays.

Apple will unveil new iPads at an event today as it seeks to spark sales of the tablet computers, its second-biggest product after the iPhone, people familiar with the situation have said.

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