Taipei, May 11
Taiwan Semiconductor Manufacturing Co. is expected to remain Apple's primary chip manufacturing partner despite reports that Apple could shift some orders to Intel, according to a report by Focus Taiwan.
Citing industry experts, the report noted on Sunday that the technological lead and production stability of the world's largest foundry made it indispensable for Apple's core devices for the foreseeable future.
The report mentioned that the comments followed a report by The Wall Street Journal on Friday that Apple and Intel reached a preliminary agreement after more than a year of negotiations. The deal reportedly involved Intel manufacturing some chips for Apple devices, signaling a potential diversification in Apple's supply chain.
Liu Pei-chen, an economist with the Taiwan Institute of Economic Research, told Focus Taiwan that TSMC's advanced packaging technologies, including InFO and CoWoS, remained critical to the performance of Apple's A-series and M-series chips. She noted that these proprietary processes provided a level of performance that competitors struggled to match.
She said that Intel and Samsung Electronics still lag behind TSMC in areas such as chip yields and power efficiency, making it difficult for Apple to move flagship chip orders away from the Taiwanese foundry in the near term.
The economist added that Apple and TSMC built deep technological ties over the years, creating a high barrier for competitors. She explained that unless rivals achieved major breakthroughs in 2-nanometer or gate-all-around (GAA) technologies, TSMC was expected to remain Apple's preferred manufacturing partner.
Liu highlighted that while Intel is pushing its Intel 18A process and Samsung is seeking opportunities through its 2nm GAA technology, both companies have previously struggled with issues such as unstable yields and excessive power consumption during large-scale production.
She also mentioned that TSMC's leading position remained difficult to challenge due to its stable delivery record and extensive research and development capabilities. For Apple, shifting core chip orders too early posed significant supply chain risks that the company likely sought to avoid.
President Capital Management Co. Chairman Li Fang-kuo told CNA that Apple's reported move was not due to problems with TSMC's technology. He attributed the development to the fact that strong demand for advanced processes from artificial intelligence chip customers, such as NVIDIA, tightened TSMC's production capacity.
Li said the situation reflected TSMC's dominant position in advanced chip manufacturing, with demand currently exceeding supply across the industry.
- ANI
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