Apple Inc. Reportedly Taps Taiwan Semiconductor for S2 Chip Manufacturing

Image credit: Apple.

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It's well known that Apple (NASDAQ: AAPL) relied on its arch rival, Samsung (NASDAQOTH: SSNLF), to manufacture the processor inside its first-generation Apple Watch wearable device. That chip was built on a relatively dated 28-nanometer manufacturing technology, which, for an extremely power-limited wearable design, led to significant limitations in terms of performance.

According to KGI Securities analyst Ming-Chi Kuo, via Digitimes,, the next-generation Apple Watch -- known as the Apple Watch 2 -- as well as a refreshed variant of the current-generation Apple Watch will use a new applications processor manufactured in Taiwan Semiconductor's (NYSE: TSM) 16-nanometer process technology.

A win for TSMC

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