Apple buys 80% of 5nm production from TSMC by 2021

This is a very good year for TSMC, the largest processor manufacturer in the world. Not only is it expected to record record revenue this year after a year in which it produced most of the world’s 7nm processors for companies such as Qualcomm, Apple and AMD, but next year it will have even more “work” to do. The company has already started production of 5nm chips, and next year it already has all the production capacity already “sold”, with Apple occupying a large part of the production lines.

TSMC will no longer be able to take new orders for 5nm production

Apple A14 from iPhone 12 and iPad Air and the new Apple M1 processors from Mac computers are the first Apple 5nm processors, and they were produced in the TSMC factory together with Huawei’s Kirin 9000 processors. Next year, Apple would have already reserved 80% of the production of 5nm processors from TSMC, with other companies occupying the remaining 20%.

This will include both the Apple A14 and Apple M1 processors, already launched, and the next generations. We are talking about a possible Apple A15 for the iPhone 13 generation, about an Apple M2, which will probably be integrated into other Mac computers during 2021, as well as probably other new variants, not yet announced.

What TSMC will not produce is the new Snapdragon 888 chipset, also developed on a 5nm architecture. Orders for these models from Qualcomm will be honored by Samsung, which will produce them in its own factories, along with the Exynos 2100, also developed on 5nm.

TSMC will also start next year the “risk” production for 3nm processors. Companies that choose to produce such processors will assume that they will not be tested before delivery and most likely, they will be integrated into ultra-premium products or just prototypes. Only in 2022 is the transition to 3nm expected for mass-produced processors.

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