Taipei, Nov. 23, 2009 (CENS)--Taiwan Semiconductor Manufacturing Co. (TSMC) is likely to make CDMA2000 baseband chips which Qualcomm Inc. designs for the worldwide-version 3G iPhones, industry executives estimate.

Apple has decided to add CDMA2000 technology to its WCDMA-powered 3G iPhones, enabling it to work almost anywhere in the world. WCDMA technology now enables the phones to work in Europe and Africa.

Holding the largest number of CDMA2000 patents, Qualcomm, currently the world`s No.1 wireless-chip vendor, is expectedly contracted to supply the chips to the more powerful Apple smartphone.

Industry executives said Qualcomm would contract TSMC to make the chips using 40-nanometer process, further helping push up TSMC`s 2010 revenue. Institutional investors project 40nm process to account for 10%, or NT$9 billion (US$281 million at US$1:NT$32), of TSMC`s revenue for the fourth quarter and to bring the company more than NT$10 billion (US$312 million) in the second quarter of 2010.

Apple has depended on Infineon AG of Germany for the supply of chips used in its 2G iPhones and WCDMA 3G iPhones until its plan to introduce world-version 3G phones. Infineon has shifted foundry outsourcing to United Microelectronics Corp. (UMC) from TSMC out of cost concern when it started developing 3G chips for iPhone. Infineon is still depending on UMC for foundry service using 90nm process on the chips and will shift the chips to 65nm process by the end of this year.

Industry watchers pointed out that the outsourcing shift would unlikely affect UMC`s business as the two types of iPhone do not rival each other.

(by Ken Liu)