Apple Reportedly Delays Launch Timeline To Use TSMC’s Sub-3nm Technology Due To Multiple Production And Demand Issues

wccftech.com:

TSMC’s 3nm process will be utilized to mass produce the upcoming A17 Bionic and M3 for future iPhones and Macs. While Apple would appreciate nothing more than to jump immediately and secure orders for more advanced nodes below the 3nm lithography, a recent report states that there are numerous problems that need to be addressed first. This is why the company has delayed its plan to use cutting-edge technology, along with other customers, at least for now.

Aside from Apple, DigiTimes reports that major TSMC customers such as Qualcomm and MediaTek have also delayed the time to place orders for the chip maker’s sub-3nm wafers, a decision that could have negative implications on TSMC’s revenue growth if this trend continues. Just recently, the Taiwanese giant provided a roadmap of its 3nm variations, indicating that it is committed to mass producing ‘state of the art’ manufacturing processes for a multitude of customers.

However, for 2023, industry insiders have stated that TSMC’s growth largely depends on chip orders from Apple for its A16 Bionic and the world’s first 3nm smartphone chipset, the A17 Bionic. As for why major players have delayed their plans to use sub-3nm chip technology for their products, reduced smartphone and hardware demand is the primary reason, as this is leading to unused chip inventory.

Additionally, TSMC has been running into production issues with the latest iteration of the 3nm node and is unable to meet Apple’s chip demands for the A17 Bionic and M3. Advanced variations of the 3nm process, such as N3E, could be more costly to produce at the same yield rate, further delaying shipments. TSMC’s customers will probably stick with 3nm shipments until they feel that sub-3nm wafers have matured in