Apple News: Global tech giant Apple has reportedly bought out 90% of Taiwanese TSMC 3nm Semiconductor chip production for 2023. Read here.

A seismic shift is underway in the semiconductor industry as Apple snaps up nearly 90% of TSMC’s first-generation 3nm chip production capacity for 2023.

According to industry insiders, this move is set to provide the Taiwanese foundry with an exponential growth impetus in the second half of 2023.

The power move by the Cupertino-based tech giant is in preparation for future iPhones, Macs, and iPads, and will leverage TSMC’s first-generation 3nm process, also known as N3B.

The 3nm technology is expected to deliver a whopping 35% improvement in power efficiency and a 15% faster performance compared to its predecessor, the 4nm chip used in the A16 Bionic processor for the iPhone 14 Pro and Pro Max.

New Macbook Air and iMac Will be First to get 3NM Chips

The first devices to taste the power of the 3nm chips are likely to be the updated 13-inch MacBook Air and 24-inch iMac, both anticipated to arrive later in the year.

On the tablet side of things, new iPad Pro models launching next year are likely to be powered by M3 chips.

As for Apple’s M3 Pro and M3 Max chips, they are anticipated to feature in the 14- and 16-inch MacBook Pro models set to debut in 2024.

Behind the scenes, Apple is reportedly testing a new chip featuring a 12-core CPU, an 18-core GPU, and 36GB of memory.

This could be the baseline M3 Pro for the forthcoming 14-inch and 16-inch MacBook Pro models.

Apple’s Chip Monopoly Stifles Competition

The ramifications of Apple’s chip monopoly are significant.

With Apple taking the lion’s share of TSMC’s 3nm production capacity, competition for the remaining 10% will be fierce among other tech giants such as Qualcomm, MediaTek, and Samsung.

This intense competition may explain why these companies are reportedly sticking with the 4nm architecture for the foreseeable future.

The benefits of transitioning to the 3nm process are numerous.

Besides offering a 35% increase in power efficiency, this new architecture will also boost performance by 15% compared to the A16 Bionic chip used in the iPhone 14 Pro and Pro Max.

Notably, TSMC’s N3 technology will provide up to 70% logic density gain, 15% speed improvement at the same power, and 30% power reduction compared to the N5 (5nm) tech.

TSMC Struggling to Meet Demand for 3NM Chips

Apple’s move to secure the majority of TSMC’s 3nm production capacity is not without challenges.

TSMC is reportedly struggling to meet demand for its 3nm chips, as per a report from EE Times.

With issues surrounding tooling and yield, the ramp-up to volume production of the new chip technology is proving to be a challenge.

Despite these hurdles, TSMC looks set to boost yields by around 5+ points each quarter.

With this in mind, Apple’s move to secure 90% of TSMC’s 3nm production capacity could offer the company a significant competitive edge in the tech industry, potentially leading to a surge in Apple’s market share.

As the tech world waits in anticipation for the launch of Apple’s 3nm devices, the focus will shift to TSMC’s ability to ramp up production to meet the high demand.

Will this strategic move by Apple revolutionize the semiconductor industry or will it open up opportunities for competitors to catch up?

Only time will tell. Meanwhile, consumers can look forward to a new generation of Apple products promising unprecedented performance and power efficiency.

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