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Chip shortage: TSMC prioritizes Apple and car manufacturers

Milan Jovicic by Milan Jovicic
June 22, 2021 - 16:03 CEST
in Apple Rumors
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chip shortage Apple

Abstract Central Computer Processors Concept. 3D illustrations. Conceptual CPU on circuit board - PCB. Depth of field effect

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In a challenging environment for chip manufacturing, Apple partner TSMC is reportedly de-prioritizing orders intended for PCs and servers and instead focusing on automakers and Apple's needs.

Because so many products today contain silicon, the semiconductor shortage has affected production in many industries, with the auto industry being hit the hardest. The new DigiTimes report states that TSMC's primary focus is on integrated circuits and Apple chip orders, followed by orders from PC and server makers. TSMC is Apple's exclusive manufacturer for the A-series chips used in iPhone and iPad devices, as well as the M-series chips used in Apple Silicon Macs.

iPhone 13: Apple could deliver within the usual time frame

For the iPhone 13, or iPhone 2021, TSMC manufactures the new Apple-designed A15 chip using a 5-nanometer manufacturing process. Due to its size, Apple can logically negotiate more favorable terms, ensuring its orders are fulfilled first. Based on current information, it looks as if Apple could ramp up mass production of the iPhone 13 series in time to unveil the devices in September. With the new iPhone launching this fall, securing chip supply in the third quarter is a key focus for Cupertino. Earlier this year, the company stated that the chip shortage was limiting production of iPad and MacBook models. During its last quarterly earnings release, Apple CEO Tim Cook said the company was struggling to secure high volumes of chips from "legacy nodes," essentially suggesting that Apple's premium SoC chip orders from TSMC will not be significantly affected. (Photo by cherezoff / Bigstockphoto)

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Milan Jovicic

Milan Jovicic

Milan founded Apfelpatient in 2016 and has been responsible for all editorial content since 2018 — news, rumors, guides, and product reviews. Apple devices here are not test units on loan for two weeks but everyday tools: from the iPhone through MacBook Pro, MacBook Air, and iMac to the Apple Vision Pro, at least one device from nearly every product category is in daily use, many of them replaced annually. Every menu path in a guide is verified on the device before it is published.

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