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Mediatek Cuts TSMC Production of 28nm Chips, To Make Way for Smaller and More Efficient Chips

by Habeeb Onawole 0

Taiwanese semiconductor manufacturer, Mediatek is reported to have cut its orders for 28nm chips. The chips in this category include the Helio P10 and Helio P15 and are made by TSMC.

The reduction in orders total 20,000 wafers which is about 30% of the their total wafer for the process each quarter and are for the months of June, July, and August.

Mediatek

Some say the reduction is to allow for an increase in the production of other more efficient 16nm chips that can compete with 14nm chips from Qualcomm such as the Snapdragon 626 and Snapdragon 660.

Others also say the reduction is part of a move by Mediatek to be conservative about its business in Q3 2017. The semiconductor manufacturer is set to hold an investors’ meeting on the 28th of April where it will discuss its Q1 performance.

READ MORE: Mediatek Chipset Shipments Fall to Only 100 Million in First Quarter

Mediatek recorded NT$56.08 Billion in revenue in the first quarter of the year. Although the figure represents a 0.3% increase compared to the same period last year, it is an 18.3% reduction from that of the previous quarter.

(Sources: 1, 2)

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