Apple’s latest move: partnership with TSMC

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Apple has teamed up with a Taiwanese chipmaker to make its iPhones. This new partnership will allow the Cupertino-based company to use a faster and more advanced manufacturing process.

According to Nikkei Asia, the soon-to-be-released iPhone might be equipped with a new modem chip, allowing it to communicate over 5G networks. This timing suggests that these chips will only be included in devices shipped in 2023. However, this will only happen if mass production begins next year as expected and the new chips enter the market.

iPhones are only as good as the modem chips they use to connect with carriers. Apple currently sources its baseband processor from Qualcomm. And it also supplies it with other device components necessary for mobile connectivity. Moreover, it is rumored that Apple will be working on new devices that use radiofrequency and millimeter technologies. But not much information has been made explicit.

According to recent developments, in 2023, Apple is partnering with TSMC to develop a revolutionary 5G modem chip. Meanwhile, the prototypes are expected to hit the market in 2021. Mass production should start at a four-nanometer level before switching over for more advanced processes.

And with this timeline, Apple should be ready to incorporate TSMC’s four-nanometer manufacturing technology into its products within two years. Therefore, users will find these new chips in the next iPhone and MacBook.

Why is this a good idea for Apple?

Apple has predicted production numbers to drop down below 20% in 2021. Therefore, in 2019, Apple made what could be one of its most important moves yet. It has acquired Intel Corp’s modem chip business for 1 billion dollars – a move that would help them become less dependent on Qualcomm.

And according to a new report, Apple is working on an integrated modem for their next-gen devices. This will allow them to eliminate separate components, leading down some interesting paths in future products.

Will there be any changes in quality?

In 2023 they are expected to adopt TSMC’s new three-nanometer process, which will enable them to make better-performing chips using less electricity. And they can do this while still delivering comparable performance levels. This offers higher speeds at lower power consumption rates if desired by clients.