Report: Apple adding TSMC as second chip source earlier than expected

Financial giant Credit Suisse says that Apple will be accelerating the time tablefor its plan to add TSMC as a second source for the chips it uses on its mobile devices. Currently, Apple depends on Samsung produced chips, but tensions between the two giants have run high lately due to the high profile patent battles that the pair have had. Credit Suisse says that the Taiwan based contract chipmaker could start receiving orders from Apple as soon as the second quarter of 2013. The brokerage firm had earlier expected Apple to add TSMC as a second source late in 2013 or early in 2014.

The Samsung produced A6X

Manish Nigam, head of the brokerage’s non-Japan Asia technology research division said that checks with equipment suppliers and other companies in Japan, Taiwan and China point to an earlier timeframe for Apple to start giving orders to TSMC. And instead of starting with chips produced using the chipmaker's upcoming 20nm process, Apple might start purchasing chips made using the current 28nm process instead.

Credit Suisse is giving TSMC an upgrade to "Outperform" from "Neutral" and raised its target to NT$109 ($3.75 USD) from NT$95 ($3.27). The stock closed Monday at NT $96.50 ($3.32 USD).