Fabless firms such as MediaTek and HiSilicon are slowing their pace of orders and have warned of disappointing shipments in the third quarter.
Chip orders from the non-Apple camp should have picked up starting April and grown through August, but orders seem to have been pushed back in 2017 as companies adopt a wait-and-see approach before the launch of Apple's upcoming iPhones which they believe will come with revolutionary features, the sources indicated.
TSMC says non-Apple customers have been expressing more interest in its 12nm node manufacturing; rather than the 10nm process being used for the chip in the upcoming iPhone. Apple's orders are expected to sustain demand for the 10nm chips through the first quarter of 2018.
Demand for 28nm chips used in non-smartphone applications remains strong.