TSMC TO MEET SURGING DEMAND FOR APPLE'S iPhone 15

TSMC Poised to Ramp Up 3nm Production to Meet Surging Demand for Apple's iPhone 15, Aiming for Up to 100,000 Wafers Monthly by End of 2023

According to recent reports, TSMC is preparing to meet the anticipated high demand for Apple's upcoming iPhone 15 Pro and iPhone 15 Pro Max, both featuring the first 3nm System-on-Chip (SoC) manufactured on TSMC's next-generation node. TSMC plans to ramp up its 3nm production by the end of this year, with the aim of reaching a monthly output of 100,000 wafers.

The majority of TSMC's 3nm capacity will be dedicated to producing the A17 Bionic chip, which will power the iPhone 15 Pro and iPhone 15 Pro Max. While the exact percentage of orders fulfilled for Apple has not been disclosed, an earlier report indicated that Apple had secured 90% of TSMC's 3nm chip shipments. This suggests that if TSMC reaches its monthly output target of 100,000 units, around 90,000 wafers will be allocated to Apple.

TSMC's competitors have refrained from utilizing the cutting-edge 3nm process due to the high wafer cost. Apple, however, is expected to absorb these expenses. It is worth noting that TSMC may offer concessions if its output reaches 100,000 monthly wafers by the end of 2023. Nevertheless, the initial price increases associated with the advanced technology may result in the iPhone 15 Pro and iPhone 15 Pro Max being more expensive for consumers compared to their predecessors.

To mitigate costs, TSMC is reportedly considering a shift from its N3B process to N3E, which could help reduce expenses. However, there are rumors suggesting that such a transition may lead to a slight performance loss in the A17 Bionic chip.

In preparation for the launch, Foxconn is set to begin mass production of the iPhone 15 Pro and iPhone 15 Pro Max this month, with an initial shipments target of 85-90 million units. Both TSMC and Foxconn are expected to scale up production based on demand. Considering the enhanced features exclusive to the "Pro" models compared to the iPhone 14 Pro and iPhone 14 Pro Max, Apple's supply chain partners are likely prepared for the expected surge in production and demand.

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