Taiwan prays for Apple investment -

The semiconductor industry in Taiwan faces an Apple disguised as a dangling carrot, with most companies hopeful Cupertino's product refresh will kick start some contracts.

Both the debt crisis in the EU and the debates on the debt ceiling in the US, writes Taiwan Economic News, are slowing productlust for electronics, including smartphones and tablets. Even though some segments have been performing well, the Taiwanese paper says, insiders are pessimistic.

As Taiwan's biggest DRAM manufacturers post huge losses amid weakened demand, Formosa's technology industry is gazing toward the next milestone in consumer electronics. Semiconductor companies are hoping Apple will buy IC chipsets for the predicted iPhone 4S and iPad 3 to give them a shot in the arm.

There are whispers that Apple will go shopping for IC chipsets in its new products this August.

This will relieve the mighty TSMC if the rumours are true, as Qualcomm allegedly plans a huge contract for handset IC chips.

Suppliers in Taiwan will want to brush shoulders with companies who either win or are closely related to the lucrative Apple contracts. One Cupertino company holds abominable power n the entire industry, but if it acts as expected, it will create a positive domino effect.