Apple and Taiwan Semiconductor Manufacturing Co., the world’s largest information technology corporation, have agreed to collaborate on the development of Apple 5G modems for future iPhones. Apple is purportedly aiming to adopt TSMC’s 4nm manufacturing node, according to a recent report from Nikkei. This is a modem that has yet to be deployed or used in any commercial product. For the time being, this modem is still being designed and tested at 5nm, with intentions to transition into commercial manufacturing at 4nm in 2023.
Apple’s transition to self-designed modems has been long anticipated, and it is projected to happen by 2023. Apple’s modem would be formed by TSMC, which would be a natural manufacturing partner. Qualcomm, the industry’s main player and the manufacturer of modem components for the whole iPhone 13 family, has stated that it expects to account for less than 20% of iPhone modems in the next two years. It appears to be the case, given Apple’s ambitions for TSMC to develop its own modem for future iPhones.
Apple bought Intel’s 5G modem group in 2019, hinting at a future transition. Qualcomm and Apple had reached an agreement earlier that year to settle an expensive modem technology patent dispute, with Qualcomm agreeing to a $4 billion payout.
TSMC has had a good run with Apple recently, producing all iPhone A-series CPUs as well as M1 systems-on-chip for Mac computers. Hundreds of TSMC engineers are based in Cupertino, according to Nikkei, and are ready to collaborate with Apple’s chip development team. TSMC’s 4nm process is expected to be used in iPhone SoCs in 2022. By the year 2023, some iPad models are expected to have 3nm processors. According to Nikkei, iPhone will make the 3nm transition “as soon as” next year.
