TSMC Sits on $1 Billion of Apple Chips as It Waits for DRAM

TSMC reportedly has a large stockpile of Apple chips as the company waits for DRAM delivery from Apple's suppliers to integrate into a complete package. Using Integrated Fan-Out Package on Package (InFO-PoP), TSMC is developing a 3D wafer-level fan-out package. This package is designed to hold memory directly above the SoC die, resulting in a smaller PCB design without the LPDDR5X module occupying over 100 mm² of PCB area. With less than six weeks until the launch of the iPhone 18 series and the iPhone Ultra, Apple is rushing to place DRAM orders to secure new supplies. The Cupertino-based giant primarily relies on DRAM from Micron, whose LPDDR5X memory is used in a range of devices and is the main source for the next-generation iPhone. SK hynix and Samsung are also suppliers, but Micron remains the primary choice.

Apple has reportedly been working to get more manufacturers on board, even negotiating with CXMT for a discount based on volume, but CXMT reportedly rejected this idea. As TSMC waits for Apple's DRAM suppliers, especially Micron, the company can't assemble Apple's processors just yet. InFO-PoP requires DRAM dies to be integrated into the package, and TSMC can't ship any processors before packaging is complete. This process reportedly takes up to two weeks, which means that TSMC and Apple will be working with a tight deadline around the launch of the latest iPhone update.