TSMC production is hindered, iPhone 14 may not be able to use 3nm chips

According to a new report released today by Information cited by 9to5mac, Apple has a very close relationship with TSMC, and TSMC is working hard to transition to 3nm manufacturing.

The A15 processor in the iPhone 13 is manufactured using a 5nm process. TSMC is transitioning to 3nm manufacturing technology but faces challenges along the way.

The report states that if the iPhone 14 is equipped with a new 3nm chip, Apple will be able to use "more powerful and less energy-consuming processors and significantly increase their size" in its devices. However, next year's iPhone 14 may not be equipped with a 3nm chip.

According to the analysis of Apple's previous chip information, TSMC's final analysis is that the iPhone's processor will be stuck on the same chip manufacturing process for three consecutive years (including next year), which is the first time in its history. This situation may cause some customers to postpone their device update plans for a year and give Apple's competitors more time to catch up.

Despite these delays, TSMC is still expected to be the first to reach 3nm, ahead of other chipmakers like Intel and Qualcomm. Previous reports have suggested that Apple may use 3nm chips in some of its 2022 products, but if the reports are true, that may not be the case.

Financially, the relationship between TSMC and Apple is said to be incredibly codependent. Apple reportedly accounted for a quarter of TSMC’s total revenue last year. Apple is also said to have received “VIP” treatment from TSMC, including last year when it came to making chips for the iPhone 12:

"Like most VIP customers, Apple's requirements can be particularly high," said a former TSMC engineer. After TSMC encountered problems in manufacturing iPhone 12 processors in 2020, Apple pressured it to supply more chips but did not increase the total contract price.

A former Apple chip executive said that early in the cooperation, Apple asked TSMC to build at least one additional chip factory in Kaohsiung, a city in southern Taiwan Province, due to concerns about earthquake risks. Earlier this year, TSMC expressed its willingness to build a factory in the city.