The persistent rumor that Apple will shift its foundry business from rival Samsung Electronics to Taiwan Semiconductor Manufacturing is given credence by industry analysts, who see the transition starting with fabrication of the 20-nanometer generation of chips next year, Lin Yang writes. TSMC is a pure-play foundry, while Samsung makes chips for its own use and for foundry customers. "This is the reason that companies such as Nvidia and AMD, which actually compete against each other in PCs, both go to TSMC (to make their chips)," said Patrick Liao of Nomura Securities.

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