Taiwan’s TSMC to prioritise Apple, car chips in 3rd quarter

24-Jun-2021 Intellasia | TaiwanNews | 5:02 AM Print This Post

Taiwan Semiconductor Manufacturing Co. (TSMC) is set to focus on Apple and automotive chips in the third quarter amid the continuing global chip crunch.

According to sources from fabless chipmakers talking to Digitimes, TSMC intends to prioritise orders of Apple chips and automotive integrated circuits followed by orders of PCs, servers, and networking devices. TSMC exclusively manufactures Apple’s A-series of chips used in iPhones and iPads, in addition to the M-series chips seen in Apple Silicon Macs, according to 9to5Mac.

For the iPhone 13, the Taiwanese company is manufacturing the new Apple A-15 chip using the second-generation 5 nm process (N5P). Apple’s A14 chipset was the first mass-produced chip to utilise TSMC’s 5 nm technology.

Apple has been able to get favourable terms because of its scale, meaning that TSMC will fill its orders first. The next iPhone is expected to launch in the fall, so securing enough chips for Q3 is vital for Apple.

While the chip shortage has affected several industries, carmakers have been among those most severely impacted. At the beginning of the pandemic, car sales plunged, leading to fewer automotive chip orders, so chipmakers switched capacity to fill the sudden demand for consumer electronics due to remote work and distance learning.

As auto sales suddenly began to rebound at the end of last year, automakers found they did not have enough chips on hand, and with foundries tight on capacity, carmakers have had to wait, with companies like Ford, general Motors, and Volkswagen having to stall or stop production on certain models.

At the end of May, TSMC said that it would increase production of automotive chips by 60 percent this year. According to Ford CEO Jim Farley in April, the full recovery of the car chip supply chain could stretch into 2022.

https://www.taiwannews.com.tw/en/news/4230290

 

Category: Taiwan

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