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TSMC to challenge Intel data center dominance with IBM win

Taiwanese chipmaker hopes to wean itself off Apple and smartphones

The Taiwanese chipmaker's production lines are among the most advanced in the industry. (Photo courtesy of TSMC)

TAIPEI -- Taiwan Semiconductor Manufacturing Co. (TSMC) is poised to secure a crucial order from IBM for premium server chips, validating the company as a serious challenger to global chipmaker Intel in the high-value data center market.

The chips IBM wants also power the core processors in Apple's newest iPhones. These are the industry's smallest and most cutting-edge semiconductors, and well-placed supply chain sources told the Nikkei Asian Review that IBM will put them into its next-generation mainframe servers.

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