Apple’s highly anticipated 3nm chipsets, the A17 Bionic and M3, which are being manufactured by Taiwan Semiconductor Manufacturing Company (TSMC), are reportedly facing low yields, which could lead to a shortage of chipsets for the iPhone 15 Pro and the next generation of Macs. Here’s what we know about the situation.
TSMC CEO CC Wei has addressed the issue, acknowledging that the demand for 3nm chips is exceeding the company’s ability to supply them. “As our customers’ demand for N3 (3nm) exceeds our ability to supply, we expect N3 to be fully utilized in 2023, supported by both HPC and smartphone applications,” Wei said. This suggests that TSMC is struggling to keep up with the demand for 3nm chipsets, but they are expected to increase their yield gradually over the next few quarters.
Low Yield Rates Could Cause a Chip Shortage
TSMC is currently the only manufacturer, aside from Samsung, that has the capacity to manufacture 3nm chipsets. However, the yield for TSMC’s A17 and M3 chipsets is reportedly at 55%, which means that there might not be enough chipsets to produce the iPhone 15 Pro and M3-based computers to meet the expected demand. This could cause a chip shortage, and consequently, a delay in the release of Apple’s upcoming devices.
TSMC Expects to Boost Yields Gradually
TSMC is reportedly on schedule to increase the yield rate by around 5+ points each quarter. If TSMC can successfully increase its yields, Apple should be able to meet the demand for its new devices. The shift to 3nm from the current 4nm of the iPhone 14 Pro’s A16 Bionic is expected to result in both power and efficiency gains, which could make the iPhone 15 Pro a highly anticipated update. Additionally, the updated camera sensor and the inclusion of USB-C are expected to further enhance the user experience.
Possible Implications for Apple and the Industry
The potential chip shortage could not only impact Apple but also the technology industry as a whole. The lack of 3nm chipsets could potentially delay the release of new devices, which could lead to reduced sales and revenue for tech companies. Apple, in particular, is highly dependent on TSMC for its chip manufacturing, and any shortage could negatively impact the company’s sales and financial performance.
In conclusion, TSMC’s low yield rates for its 3nm chipsets pose a significant risk for Apple and the tech industry. However, TSMC’s plans to gradually boost yields provide some hope for meeting the demand for the upcoming devices. It remains to be seen how this situation will play out, but it’s clear that Apple and other tech companies will need to keep a close eye on the chip supply chain and potential shortages in the coming months.
