Thursday, January 27, 2022

TSMC prioritizes Apple’s chip orders due to the current shortage

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TSMC has been rendered as the sole consistent chip supplier for the entire tech industry. Despite their best attempts to fulfil all the orders of their partners, they have had to make hard choices by prioritizing which of them receive their chip orders over the others. According to the latest report, Apple appears to have made the cut.

A report from DigiTimes states that Apple, along with other key partners will be prioritized when it comes to chip orders. Apple is already said to have secured TSMC’s initial batch of 4nm and 3nm Chip orders which they will integrate into the upcoming iPhones, iPads, and Macs.

Apple A13 Bionic chip is up to 50% faster than Snapdragon 855+

It comes as no surprise that Apple has been given priority over others as they sell millions of iPhones, iPads, and Macs featuring TSMC’s chips. A healthy chunk of TSMC’s quarterly profits come from their partnership with Apple.

Apple’s position in the tech industry allows it to negotiate in such situations, especially when it comes to newer technology. According to previous reports, the California-based giant has not just received their initial shipments of 4nm chips but TSMC is also rushing to have their 3nm chips delivered promptly, suggesting that they are preparing for the worst in the event of the chip shortage persisting in 2022 as well.

Apple and TSMC’s partnership is one of the prime reasons why the A15 Bionic, the new SoC that will power the iPhone 13 series, has reportedly gone into mass production. This will likely benefit Apple’s scheduled release timeline.

Chipmaker Qualcomm on the other hand has not been so lucky, it has had to turn to Samsung for help to produce its upcoming Snapdragon 895.

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TSMC is currently working on prepping its N5P node, which will be an advanced variation of its regular 5nm process. We may see slight performance improvements and better power efficiency when the A15 Bionic comes.

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