Apple chip partner TSMC plans to expand its purview

Apple chip maker TSMC is reportedly looking for growth in various other fields than just making chips for the iPhone maker. Taiwan Semiconductor Manufacturing Company (TSMC) is increasing its work in 5G, high-performance computing (HPC), and automotive electronics.

The Taiwan based manufacturer TSMC has been making iPhone and iPad A-series chips for years now. The manufacturer also recently took up the task of producing the M-series for the Mac. Apple has successfully created the first commercial 5nm chip – the A14 Bionic – which released last year alongside the iPad Air. 

Increase in capital expenditure

The new growth areas of Taiwan Semiconductor Manufacturing Company (TSMC) will see a major rise in capital expenditure- by almost $10 billion. The manufacturer has set its expenditure at $25 to $28 billion for 2021. Last year, the manufacturer had allocated $17.24 billion for expenditure.

The new interests for TSMC have reportedly been fueled by the growing demand by Apple for its chips and other untapped fields. The semiconductor king Intel is also reportedly considering outsourcing the manufacturing of its chips to TSMC as it looks to once again be innovative. Intel is struggling to create 7nm and 5nm chips whereas Apple and other companies have successfully done the same. As a result, Intel is considering changing its strategies.

Apple chip partner TSMC plans to expand its purview
Apple transitions from Intel to Apple Silicon on the Mac

TSMC is also reportedly working with Apple on the next generation 3nm chips. The iPhone maker is not expected to ship devices with 3nm chips until 2022 or 2023. TSMC will start “risk production” of the next generation chips sometime this year, ahead of the manufacturing for commercial use. Apple will very likely use 3nm chips in the future Macs as well, the company is already using 5nm M1 series chips in some Mac models.

Apple is expected to transition completely to Apple Silicon in 2022 from Intel. The iPhone maker will likely continue to work with TSMC for years to come.

Latest News