TMSC 3nm chips exclusive to Apple this year, as Intel plan delayed

Only Apple products will get TSMC 3nm chips this year, says a new supply chain report. Only in 2024 will the Taiwanese chipmaker start making 3nm chips for other companies.

This is a change to earlier expectations, which would have seen Intel receive some TSMC-made 3nm chips toward the end of this year …

Background

Up to and including the iPhone 6S, Apple used to split its A-series chip manufacturing between TSMC and Samsung. 

However, TSMC subsequently developed a strong technical lead over Samsung, with ever-smaller processes. This saw it win all of Apple’s business for the A10 Fusion chip used in the iPhone 7, and it has been the sole supplier of A-series chips ever since then.

The same was true of Apple Silicon Macs, where TSMC’s technological lead has seen it win all of the Cupertino company’s chipmaking business.

Intel would have been a TSMC customer this year

While Apple was always expected to be the primary customer for TSMC 3nm chips, starting with the iPhone 15 Pro and Pro Max, US chipmaker Intel was also said to be placing orders toward the end of the year.

That unlikely-sounding scenario is because Intel knows Windows PCs need 3nm processors to try to catch up with the performance and power-efficiency of Apple Silicon Macs, but the company’s own chip fabrication capabilities are so far behind that it cannot possibly make these in-house. Its plan, then, is to have TSMC make Intel-designed chips for its Arrow Lake processors.

However, Digitimes reports that Intel has now slowed down its plans, and now won’t take delivery of any TSMC 3nm chips until next year.

TSMC 3nm chips will be exclusive to Apple

This means that the Taiwanese chipmaker’s most advanced chips will be exclusive to Apple in 2023.

The growing challenge of smaller processes has seen even TSMC struggling to achieve the necessary yield rates for this year’s iPhone lineup. Back in April, the company said that it wasn’t able to keep up with demand for 3nm chips.

However, with reduced Apple orders, and Intel orders postponed, it now seems the company will be able to deliver all the 3nm chips needed this year.

Photo: iFixit