TSMC to Prioritize Chip Orders for Apple Due to the Ongoing Shortage

Omar Sohail
TSMC to Prioritize Chip Orders for Apple Due to the Ongoing Shortage

Despite the chip developing prowess of TSMC, it is not immune to the ongoing shortage and will have to make some sacrifices along the way. One of those sacrifices is prioritizing which partner gets chip orders, and according to the latest report, Apple happens to be one of those few lucky customers.

Apple Already Said to Have Secured TSMC’s Initial 4nm and 3nm Chip Batches for Upcoming iPhones, iPads, and Macs

A paywalled report from DigiTimes states that Apple, along with some other key partners, will be prioritized when it comes to chip orders. After Apple, PC and server manufacturers are next in line. One reason why Apple is preferred over others is due to its vast resources. Selling millions of iPhones and iPads, followed by Macs featuring its custom silicon, Apple can secure a sufficient number of chip orders from TSMC, which undoubtedly helps with the chip maker’s quarterly profits.

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Apple’s command in various markets also allows it to negotiate when it comes to access to newer technology. According to previous reports, the California-based giant has not just secured initial shipments of 4nm chips but 3nm as well. TSMC is reportedly racing to have 3nm chips delivered to Apple promptly, suggesting that the Taiwanese giant wants to be prepared for the worst, in case the chip shortage persists in 2022 as well.

Apple’s and TSMC’s blooming partnership could also be the reason why the A15 Bionic, the new SoC that is expected to fuel the iPhone 13 series, has reportedly gone into mass production, suggesting that Apple’s upcoming flagship smartphone series may arrive on schedule. Qualcomm may have secured chip orders from TSMC if it was not for the ongoing chip shortage, but changing circumstances have forced the San Diego firm to partner with Samsung instead for its rumored Snapdragon 895.

At present, TSMC is prepping its N5P node, which is an advanced variation of the regular 5nm process. We should see slight performance and power efficiency improvements when the A15 Bionic is officially here, and like always, we will be here to update our readers on the latest happenings in the industry.

News Source: DigiTimes

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