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The launch of the iPhone 18 series is fast approaching, but the latest reports suggest Apple is facing further supply chain issues. According to a TechPowerUp report, TSMC already holds a huge stockpile of processors for Apple but cannot finish producing them due to a shortage of DRAM. The chips involved could be worth as much as $1 billion.
TSMC has processors ready, but LPDDR5X memory is missing
According to the latest information TSMC has assembled a large number of processors intended for upcoming Apple devices. The problem is the chips cannot be finished without the appropriate LPDDR5X DRAM memory chips from the iPhone maker's suppliers. Apple uses advanced InFO-PoP technology, in which the RAM is mounted directly on top of the processor in a single package. This reduces the size of the logic board and makes better use of the internal space inside the smartphone. However, until the memory reaches TSMC's factories, the packaging process cannot be completed. That means the finished processors remain in warehouses waiting for the final stage of production. According to reports, integrating the memory with the chip itself can take as long as two weeks, so there is less and less time left before the new devices' launch. In practice this means both Apple and TSMC will have to manage production very efficiently to get everything done ahead of the new models' debut. It is not known, however, whether the situation will affect the availability of the first batches of devices.
Apple is seeking new memory suppliers, but the crisis is still being felt
Micron currently remains Apple's main supplier of LPDDR5X memory, although the company also works with Samsung and SK hynix. Growing demand for memory used in AI-powered devices has, however, significantly reduced availability. Earlier reports indicated Apple also tried to partner with Chinese manufacturer CXMT, hoping to increase supplies and secure better prices for large orders. According to reports, negotiations were not successful. As a result, the iPhone maker is still dependent on its current partners and constrained memory supply. The DRAM crisis is currently affecting practically the whole electronics industry, hitting not just smartphones but also consoles, computers and servers for artificial intelligence. Apple has repeatedly emphasised in its recent financial results that memory costs are steadily rising and could climb further in the coming months. That shows the problem is not only about logistics but also about rising production costs for new devices.
Although TSMC already has processors ready for the iPhone 18 series, a lack of adequate LPDDR5X memory supplies is preventing production from being completed. Apple is working hard to secure additional supplies, but the tight situation in the DRAM market means the company will face a very demanding production schedule ahead of the new phones' launch.
source: TechPowerUp
