Google (Nasdaq: GOOG) just unveiled its new tablet device today. With a seven inch screen and $199 price tag, there’s no question it was designed to go head to head with Amazon’s (Nasdaq: AMZN) Kindle Fire.
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Competition aside, though, it’s what’s inside the new tablet that has some investors tuned in. More specifically, the tiny processors that are able to handle an increasing amount of computing power.
Demand for these silicon chips is building momentum so quickly that the world’s top contract foundry, TSMC (NYSE: TSM), can’t supply enough of them.
As TSMC’s head of investor relations, Elizabeth Sun, says, “Last year when we were planning for this year’s capacity we probably have under-estimated true demand. Another reason is our customers’ demand forecast keeps on rising. And so both elements create a shortage issue for now.”
That’s great news for us. Considering that as competition mounts, we’ll continue to see even faster (and smaller) processors in our mobile devices.