According China Economic News (CENS), UMC has received orders from Infineon to manufacture second generation chips for the Apple iPhone. According to CENS:
Infineon Technologies will contract United Microelectronics Corp. (UMC) to make the 65nm base-band chips it designs for 3G version of Apple iPhone, ending Taiwan Semiconductor Manufacturing Co.`s (TSMC`s) monopoly in foundry manufacturing of iPhone chips. The German chipmaker has placed foundry orders for frequency chips used in first-generation iPhones with TSMC, which uses 90nm process to make the chips. Insiders pointed out Infineon decides to farm out the production contract to UMC, the No.2 pure silicon foundry, out of cost concern. They estimated Infinenon will maintain production of the 90nm analog frequency chips at the No.1 foundry player.
Taiwanese industry watchers pointed out that the latest contract represents 65nm market is growing mature and competition in market of leading-edge processes will become more intensive. In the meantime, Infineon will entrust chip assembler Siliconware Precision Industry Co., Ltd. to package and test its chips.
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