Apple is beginning to lay the critical groundwork for its next-gen custom chips, including a much-anticipated server chip, dubbed Baltra, as per a new analysis from Morgan Stanley
Apple is increasing its reservation slots for TSMC's SoIC packaging tech in anticipation of its next-gen custom chips, including the Baltra ASIC
Morgan Stanley has noted in a fresh analysis that Apple is "ramping up" SoIC-related activity at TSMC:
"Apple is materially ramping SoIC capacity at TSMC, pointing to a major push in Apple silicon for AI servers. TSMC (covered by Charlie Chan) is expanding its SoIC (System on Integrated Circuit) capacity, with Apple placing orders equivalent to 36K wafers in CY26 and 60K wafers in CY27."
According to the Wall Street titan, Apple has reserved SoIC capacity that is equivalent to 36,000 wafers for the calendar year of 2026, and 60,000 silicon wafers for the calendar year 2027.
For the benefit of those who might not be aware, the SoIC is a 3D packaging solution that allows for the horizontal and vertical stacking of multiple chips onto a single SoC-like chip.
This new packaging also facilitates the integration of multiple individual dies - such as the CPU, GPU, and the Neural Engine - onto a single package, which provides for an unprecedented level of flexibility due to the sheer number of die configurations that then become available. For instance, if you are the artsy type, you might choose to equip the M5 Pro/M5 Max chip with a greater number of GPU cores.
Of course, Apple is expected to utilize some of this oncoming capacity for the new M5 Pro and M5 Max chips, as well as the M6 Pro/Max duo that will launch next year. However, the bulk of this capacity appears destined for Apple's upcoming Baltra ASIC, which is expected to debut in 2027.
As a refresher, Apple's custom AI server chip is expected to leverage TSMC's 3nm N3E process and sport various chiplets, with each of them designed for a specific function. Apple could then combine each of these chiplets into a single unit, with Broadcom aiding in how each of these processors communicates with each other when simultaneously running in Apple Intelligence servers. This siloed approach would allow Apple to keep the overall design of the AI ASIC hidden even from its partners like Broadcom.
Eventually, Apple intends to move Baltra's production in-house and remove Broadcom's role in chip designing, as evidenced by Apple's recent procurement of T-glass samples from Samsung's SEMCO.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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