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Why does TSMC prefer Apple chips to others?

BingMag.com Why <b>does</b> <b>TSMC</b> <b>prefer</b> <b>Apple</b> <b>chips</b> to others?

As you probably know, Apple is the number one customer of the Taiwanese company TSMC, the largest chip maker in the world, and the two companies work well together. . This good relationship between TSMC and Apple prompted Intel senior executives to fly to Taiwan to discuss 3nm chip capacity with the company, as Intel plans to become one of TSMC's top customers by 2023. We will explain it. Apple reportedly agreed with TSMC to provide all of its initial production capacity of 3-nanometer chips.

Apple chips account for more than 25 percent of TSMC revenue

On top of that, and amid a global chip shortage that has shifted the supply-demand balance in the industry, TSMC has increased the price it will receive from Apple from next month for the A-Series chipset by only 3%. But the situation is different for other customers of this company, because they have to face a 20% increase in the price of TSMC. Thanks to a report from Bloomberg DigiTimes, we now know that most of TSMC's business is Apple chips. The report notes that Apple accounts for 25.9% of TSMC's business.

BingMag.com Why <b>does</b> <b>TSMC</b> <b>prefer</b> <b>Apple</b> <b>chips</b> to others?

TSMC revenue. Other TSMC customers accounted for less than 5 percent of the company's revenue. Third is AMD, which accounts for about 4.4% of the Taiwanese company's product line. Next is Qualcomm, which accounts for 3.9% of TSMC revenue. Other companies include Broadcom (3.8%), Nvidia (2.8%), Sony (2.5%), Marvell (1.4%), STM (1.4%), ADI (1.06%) and Intel (84%). The inclusion of Intel at the bottom of the list is due to the fact that the company has its own independent chip manufacturer, but is currently lagging behind TSMC in the production of advanced chips. As a result, Intel is seeking to outsource part of its chip production to TSMC, which was discussed at last week's meeting with TSMC executives. TSMC has reportedly outsourced the production capacity of its 4- and 5-nanometer chips to Intel, and this meeting was held to prevent Intel from clashing with Apple over the capacity of the 3-nanometer chip.

BingMag.com Why <b>does</b> <b>TSMC</b> <b>prefer</b> <b>Apple</b> <b>chips</b> to others?

Among Intel executives who traveled to Taiwan was Intel CEO Pat Glesinger, who recorded a video last week before leaving for Taiwan. According to published reports, the American chip left Taiwan last Wednesday after the meeting of the American designer. Glsinger also recently interviewed HBO and announced his efforts to reach the capacity of 3-nanometer chips. "Apple decided that they could design a better chip for themselves than our chips," he said. And you know, they did a great job.

We should note that according to the latest rumors, Apple is replacing the Qualcomm 5G modem chip with a chip that it will design itself. Apple's new 5G modem chip will be made by TSMC using 4nm technology and should be used in the iPhone 15 series in 2023.

He also talked about the M series chips that Apple has introduced. Designed and built by TSMC using its advanced 5nm processing technology to replace Intel components in Macs. The M1 (with 16 billion transistors), M1 Pro (with 33.7 billion transistors) and M1 Max (with 57 billion transistors) chips were introduced earlier this year. Apple uses the M1 in the iPad Pro. In addition to asking TSMC for 3-nanometer chips, Intel is interested in the Taiwanese giant's 7-nanometer, 6-nanometer and 5-nanometer chips because it wants to block its rival AMD (also a TSMC customer) from gaining market share.>

BingMag.com Why <b>does</b> <b>TSMC</b> <b>prefer</b> <b>Apple</b> <b>chips</b> to others?

Intel seeks to regain leadership of the chip manufacturing process from TSMC and Samsung

"So what Intel needs to do is make better chips than they [Apple] can do themselves," the Intel CEO continued in the interview. "We hope to be able to do this part of their business, as well as many other things, over time." Intel has also announced plans to develop Angstrom chips in 2024. An angstrom (1A) is equivalent to 1.1nm, and Intel hopes that this innovation will make them the leading chip maker in producing chips with the highest number of transistors.

Intel has been a leader in this area before, but Samsung and TSMC were able to take Intel's place while Intel was in trouble. The general rule is that the smaller the chip manufacturing process, the smaller the transistors inside a chip. This is important because the more transistors inside a chip, the more powerful and efficient that chip will be.

Apple's A4 chip, which supplied the iPhone 4 in 2010, Was built using the 45-nanometer manufacturing process of TSMC and consisted of 1.3 billion transistors. The A15 Bionic, which supplies the iPhone 13 product line, each contains 15 billion transistors and is manufactured using the advanced 5-nanometer TSMC manufacturing process.

BingMag.com Why <b>does</b> <b>TSMC</b> <b>prefer</b> <b>Apple</b> <b>chips</b> to others?

Other news reports suggest that TSMC is set to focus on making Apple chips, forgetting companies like AMD that it has been competing with for years. As a result, TSMC is likely to lose one of its largest customers, AMD. Intel and AMD, which are fierce competitors in the PC supply, must be able to meet the demand of users. They will use the same processors they have and will not think about upgrading. That's why rumors are circulating that AMD intends to work with Samsung to supply capacity for its 3-nanometer chips.

The big question for the industry is whether the size of the transistor can continue to shrink to Whether or not more of them fit into a small piece of a chip. The answer to this question is the key to producing more powerful and efficient chips. Intel, the designer and manufacturer, looks set to be TSMC's third-largest customer by 2023.


Source: Phonearena

Tags: does, tsmc, prefer, apple, chips, others?

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