iPhone 8, and most likely inclusive iPhone 7S, will have an A11 chip developed by the Apple company, but the Taiwanese TSMC will manufacture this component. TSMC exclusively produces the A10 chip used in the iPhone 7 by Apple, and starting next year it will also manufacture the future A11 chip for the iPhone 7S or iPhone 8.
TSMC's earnings will decrease by 3% in the next period due to the reduction in iPhone 7 production, but the company will recover its money as soon as the iPhone 7S and iPhone 8 are launched. In order to receive the contracts from Apple in order to manufacture the future A11 chip, those from TSMC also switched to a 10nm manufacturing process for processors.
These new processors produced using a 10nm manufacturing process will have smaller dimensions, will consume less energy, but at the same time will manage it more efficiently. In this idea, Apple will be able to offer better performance in iPhone 7S and iPhone 8 with this A11 chip, without their predecessors.
The iPhone 8 will have an A11 chip manufactured by TSMC
Apple relies on the technologies of TSMC to be able to offer very good performance in iPhone 7S, iPhone 8 and possible new models of iPad tablets. A11 chips produced using a 10nm manufacturing process will provide top performance and better autonomy for Apple products, they may be superior to those of competitors.
"A cutback in 16nm chip orders from Apple will affect negatively TSMC's performance in the first quarter of 2017. However, the foundry will start generating revenues from 10nm process technology in the quarter enabling it to mitigate the impact of Apple cutting chip orders for the iPhone 7. The foundry's other 10nm chip customers also include Apple for the A11 chips that will power the next-generation iPhone 8, HiSilicon for its Kirin 970 chips and Spreadtrum."
Of course, we won't know exactly what benefits the future A11 chip brings until the moment we see it "in action", but the future "sounds" good.
