Neutral
TSMC holds $1 billion in Apple A20 Pro chips awaiting DRAM amid global shortage
TSMC is reportedly holding approximately $1 billion worth of completed Apple A20 Pro chips that are awaiting DRAM delivery, halting their progression to final assembly. The delay stems from Apple's strategic switch to TSMC’s Wafer-Level Multi-Chip Module (WMCM) process, a packaging method that integrates logic and DRAM at the wafer level. However, a global LPDDR5X memory shortage—driven by demand from AI infrastructure—has strained supply. Although Apple and its partners, including Foxconn and BYD, express confidence in meeting launch-day demand for the upcoming iPhone 18 Pro, the shortage may cause thinner initial inventory and extended delivery timelines.
Key points
- TSMC holds $1 billion in Apple A20 Pro chips awaiting DRAM amid global shortage
- Apple's switch to TSMC's WMCM process requires DRAM upfront, causing delays
- Global LPDDR5X memory shortage affects Apple and TSMC's production timelines
Sources
AI-generated from public news sources. Not financial advice.
