by Apple supplier TSMC is taking steps to improve its production capacity for chips based on its cutting-edge 3-nanometer process technology, according to industry sources, which is expected to debut in this year’s iPhone 15 Pro and upcoming MacBook models.
DigiTimes reports that TSMC’s 5nm manufacturing capacity began to relax in November 2022 as a result of reduced orders from Apple, among other partners, with orders for iPhone chips alone down 30%. However, the Taiwanese manufacturer apparently managed to keep its utilization rate at 70% or higher thanks to Apple’s thirst for 3nm:
TSMC continues to improve its capacity utilization for 3nm process technology, which is expected to approach 50% by the end of March, the sources said. The foundry will also increase process output to 50,000-55,000 wafers per month in March, with Apple as the main customer.
Apple’s upcoming iPhone 15 Pro models are expected to feature the A17 Bionic processor, Apple’s first iPhone chip based on TSMC’s first-generation 3nm process, also known as N3E.
The first-generation 3nm process is said to offer a 35% improvement in power efficiency over TSMC’s 5nm-based N4 manufacturing process, which was used to make the A16 Bionic chip for the iPhone 14 Pro and Pro Max. The N3 technology will also offer significantly improved performance compared to current chips manufactured at 5nm.
Apple’s next-generation 13-inch and 15-inch MacBook Air models are expected to be equipped with an M3 chip, which is also likely to be manufactured on the 3nm process for further improvements in performance and power efficiency. Apple is also reportedly planning to release an updated version of the 13-inch MacBook Pro with an M3 chip. The M2 chip and the higher-end Pro and Max variants are built on TSMC’s second-generation 5nm process.
Orders for new AI processors from Nvidia and AMD, as well as Apple’s new iPhone chip, are expected to help TSMC avoid further declines in fab utilization in the second quarter. DigiTimes“, sources said.
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