Rumors are circulating about a significant upgrade to Apple’s product line, specifically regarding the introduction of the new generation M4 and A18 processors. These processors are expected to power devices such as the iPad, MacBook, and iPhone, and will feature a substantial increase in the number of built-in AI computing cores.
According to reports, TSMC (2330) is set to invest in the 3nm enhanced version of its process this year, anticipating a chip volume increase of over 50% compared to the previous year. This investment will also lead to a significant increase in advanced packaging production capacity, which will contribute to TSMC’s operational momentum.
While TSMC has refrained from commenting on individual customer orders, industry insiders suggest that Apple is capitalizing on the growing trend of AI. In response, Apple plans to not only enhance the AI computing power of existing M3 and A17 processors but also significantly boost the number and performance of the upcoming M4 and A18 processors. This strategic move by Apple necessitates increased wafer investment in TSMC’s 3nm enhanced version process, with production volumes expected to surge by more than 50% compared to last year, solidifying Apple’s position as TSMC’s largest customer.
In addition to expanding its investment in TSMC’s chip production, Apple has also secured a significant portion of TSMC’s advanced packaging production capacity. While primarily relying on orders for 2.5D advanced packaging processes like InFO and CoWoS, Apple now aims to drive demand for the more sophisticated 3D architecture SoIC advanced packaging.
Anticipating large orders from major customers such as Apple, NVIDIA, and AMD in the coming years, TSMC plans to expand its 3nm family production capacity and advanced packaging production capacity. This expansion will include advanced packaging processes like CoWoS and SoIC, with TSMC’s advanced packaging plants in Zhongke, Nanke, and Zhunan expected to play key roles in these efforts.
TSMC has allocated between US$28 billion and US$32 billion for capital expenditures this year, with the majority of the budget allocated to advanced processes. With nearly one-third of the full-year capital expenditure budget already approved by the board of directors, TSMC is preparing for a significant increase in equipment delivery and capacity expansion in the first quarter. This sets the stage for robust growth in the semiconductor sector.
Overall, the rumored upgrade to Apple’s product line, particularly the introduction of the new generation M4 and A18 processors, signifies the company’s commitment to enhancing AI computing power across its entire range of devices. With TSMC’s investment in the 3nm enhanced version of its process and the expansion of advanced packaging production capacity, Apple is poised to solidify its position as a leader in the industry and meet the growing demand for advanced technology.
