iPhone 16 Series Chip Technology Enters Full-Scale Production

TSMC’s upcoming upgrade to the 3nm node, known as N3E, offers cost savings and improved yield compared to its first-generation 3nm process, N3B. N3B was first introduced in the smartphone market through the A17 Pro chip, powering Apple’s iPhone 15 Pro models. The new N3E process not only reduces costs but also enhances chip performance and reduces power consumption.

The Upcoming iPhone 16 Series Chip Production             

According to sources from DigiTimes, TSMC has already begun mass production of N3E and plans to replace N3 with this upgraded version starting in 2024. All major chip vendors except Samsung are expected to adopt N3E, with Apple being the largest customer, having committed significant orders.

In 2023, Apple is set to receive all of TSMC’s first-generation 3-nanometer chips. Due to delays in Intel’s wafer needs, Apple is projected to utilize 100 percent of TSMC’s capacity in 2023. This move is expected to contribute significantly to TSMC’s sales, with Apple alone accounting for around $3.4 billion in revenue for the foundry this year.

TSMC is also planning to start mass production of N3P in the second half of 2024. N3P offers additional improvements over N3E, including a 5 percent increase in speed at the same leakage, a 5-10 percent reduction in power consumption at the same speed, and 1.04 times more chip density.

Furthermore, all four models of the iPhone 16 are expected to feature A18-branded chips based on TSMC’s N3E node. This information comes from Jeff Pu, a reliable analyst covering companies within Apple’s supply chain. While marketing names like A18 and A18 Pro are speculative at this stage, given that the iPhone 16 lineup is about a year away from launch, the significance of the jump from A16 Bionic chips in iPhone 15 models to potentially A18 chips for the iPhone 16 models cannot be ignored.