TSMC has regained chip orders from Qualcomm for baseband chips produced on its 7nm process, but not application processors, according to industry sources.

Qualcomm is expected to determine whether it will continue to contract Samsung to manufacture its next-generation AP or switch the orders to TSMC when both foundries develop their respective second-generation 7nm process technologies, said the sources.

TSMC has disclosed the second generation of its 7nm process using EUV will be ready for volume production in 2019. Rival Samsung indicated previously its 7nm low-power-plus (7LPP) will be the company's first EUV-based process technology slated for launch in 2018.

Qualcomm had been TSMC's biggest customer before placing 14nm chip orders with Samsung. Despite the order loss, TSMC struck a foundry deal with Apple which has replaced Qualcomm as the foundry's largest client, industry sources identified.

Orders from Qualcomm used to account for about 25% of TSMC's revenues, but the proportion has dropped to nearly 10%, the sources indicated. Winning 7nm AP orders from Qualcomm will be critical to TSMC's 7nm foundry market success, the sources said.