According to recent reports, TSMC finds it difficult to satisfy Apple’s demand for 3nm processors.

TSMC Struggles to Meet Apple’s Demand for 3nm Chips, Other Phone Makers Left Behind


According to reports, Taiwan Semiconductor Manufacturing Company (TSMC) is struggling to satisfy Apple’s huge demand for 3nm processors. According to a report by EE Times, Apple has secured all of TSMC’s 3nm production for this year, making it difficult for other phone makers to obtain the cutting-edge technology.

The iPhone 15 Pro and iPhone 15 Ultra will be the only big brand smartphones this year to employ a 3nm technology thanks to the A17 Bionic chipset, which is anticipated to contain more than 20 billion transistors. When compared to last year’s iPhone 14 Pro models, which were powered by the 4nm A16 Bionic SoC with a transistor count of 16 billion, this increase in transistor count is noteworthy.

Images: Apple Store in Saket, Delhi

Why Everyone Wants the 3nm Chips.

More transistors may fit into a device with a lower manufacturing node, increasing its efficiency and power. However, the majority of producers are unwilling to fork out $20,000 for each silicon wafer required to produce 3nm chips.

Competition for Chip Supremacy

TSMC and Samsung are now vying for dominance in the 3nm market, and Intel has said that it intends to take back control of the process node market by 2025. Though Samsung Foundry has yet to show that it has a reliable cutting-edge process technology, and IFS is years away from presenting a viable alternative, TSMC continues to be the top choice for foundries in the cutting-edge node arena.

Tough Times for TSMC

2023 is not looking good for TSMC despite Apple’s 3nm business, and sales may decline this year for the first time in ten years. Sales might fall off by a mid-single-digit percentage point from year to year. However, TSMC anticipates capital spending to stay in the $32 billion to $36 billion range, demonstrating the business’ ongoing commitment in cutting-edge technologies.

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Written by Shallu Srivastav

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