Recently, there have been reports that Apple has reduced its order size with TSMC. The company is the sole supplier of Apple chips, and the reduction in orders is a reflection of the overall weakness of the global economy. It is important to note that the canceled orders were for chips that would be made using TSMC’s N7, N5, N4, and even some N3 nodes. Here are the details…

Apple has sharply reduced the size of the order it has with TSMC

TSMC is the leading company in the chip-making industry and is currently the only company that is mass-producing chips using their respective 3nm process nodes. Samsung is the only other company currently producing 3nm chips but uses a different type of transistor. TSMC’s N3 (3nm) process node is expected to be used for the production of the A17 Bionic, which will be found in the iPhone 15 Pro and iPhone 15 Ultra, as well as Apple’s M2 Ultra and M3 chips.

Despite TSMC’s continued use of FinFET transistors for its 3nm node, it has still been able to beat out Samsung Foundry when it comes to signing up customers, with big names like Qualcomm, MediaTek, and Nvidia reserving production capacity for 2023 and 2024. In order to give Apple most of the 3nm production capacity later this year, Intel agreed to change its roadmap and delay receipt of its 3nm orders. TSMC’s enhanced 3nm process node (N3E) could be launched this year even though there might not be a big rush for orders considering the cost. It is worth noting that wafer prices have risen sharply over the years. In 2004, 90nm wafers sold for about $2,000, while in 2016, 10nm wafers cost $6,000, and in 2020, the price hit $16,000 for 5nm wafers. Wafer prices for 3nm chips are currently priced in the $20,000 area.

Intel has also announced that it will take process leadership from TSMC and Samsung by 2025, thanks to two developments. It will use RibbonFET transistors, which is another term for the Gate-All-Around (GAA) transistors already employed by Samsung, and it will use a feature known as PowerVia or backside power delivery. This will allow transistors to obtain power from one side of a chip while using the other side to connect to data communication links.

The reduction in orders from Apple with TSMC is a reflection of the overall weakness of the global economy and the hangover from last year’s chip shortage. Despite this, TSMC remains the leading company in the chip-making industry, and its enhanced 3nm process node (N3E) could be launched this year. Additionally, Intel is set to take process leadership from TSMC and Samsung by 2025, thanks to the use of RibbonFET transistors and the PowerVia feature. The chip-making industry is constantly evolving, and it will be interesting to see how these developments will affect the industry in the future.

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