In September, Apple will launch the iPhone 16 series, which may change Apple’s 2024 component strategy. A report says that all models launched in two years will use TSMC’s 3nm chips. In the future, TSMC plans to offer various types of 3nm chips, and the first generation will be used in low-priced iPhone 16s starting in 2024.

In a report accessed by the Economic Times, Morgan Stanley reports that TSMC intends to move up to 3nm soon. The chip wafer manufacturer is reportedly cutting its tip node production capacity from 80,000 to 60,000 wafers per month. Still, Apple will use much of it to make its 2024 iPhone chips.

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Many readers of this report may be confused by reports that TSMC will manufacture iPhones with 3nm chips starting in 2024.

For customers like Apple, TSMC has a variety of 3nm processes, each improving on the last. Assuming the company’s plans to launch four upcoming iPhones are not affected, the lower-priced iPhone 16 and iPhone 16 Plus could use the first-generation 3nm process mass-produced SoCs, while the “Pro” series could jump to the more power-efficient second-generation process.

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Apple is rumored to use TSMC’s second-generation 3nm process to mass-produce the M3 and A17 Bionic, both of which are expected to launch next year, but it’s possible Apple will keep the new A18 Bionic manufacturing process until 2024. Of course, it all depends on whether TSMC can continue to produce enough wafers per month without running into production hurdles, as customers like Qualcomm and MediaTek also want to use the technology for their own mobile chips.


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