Apple chipmaker TSMC’s business with the tech giant is predicted to grow by 25% in 2022 as the transition to Apple Silicon nears completion, according to a new report. Orders for the iPhone and Apple Silicon are expected to grow by $4 billion year-over-year.
TSMC will earn $17 billion from Apple in 2022 as tech giant’s transition to its custom silicon nears completion
Apple supplier Taiwan Semiconductor Manufacturing Co. in April reported record revenues for the first fiscal quarter of 2022 despite facing multiple challenges involving COVID lockdowns and the ongoing component shortage. The company also warned that consumer demand is starting to slow due to geopolitical uncertainties and COVID-related lockdowns in China however, it seems to be unaffected.
As per a new report from DigiTimes, TSMC will see an increase of 23.36% in revenue from Apple despite being concerned about waning demand. Sources told the publication that Apple is expecting shipments of chips for new iPhones and other devices from TSMC in the first half of June.
In addition to the year-on-year growth of chips for iPhones in 2022, the chipmaker is also expected to “substantially” grow its shipments of M-series chips as the tech giant working on finishing the transition to its custom silicon chips and “will this year totally wean itself off Intel CPUs for its Mac series.”
The report further adds that TSMC is expected to stay Apple’s main chip supplier with Sansung facing issues with advanced process yield performance and Intel unlikely to fulfill orders from the tech giant. According to DigiTimes, TSMC is estimated to earn $17.06 billion from Apple over the course of 2022. That compares to $13.83 billion for 2021.
Although Apple’s semiconductor manufacturing supply chain is not significantly impacted by ongoing lockdowns in China, the report suggests that if the lockdown continues for a longer period of time, Apple may have no choice but to delay the launch of its upcoming iPhone 14 lineup slated to debut in the fall.
Lastly, the report also claims that the two companies are working for developing 1nm chips for augmented-reality head-mounted devices and Apple’s long-rumored vehicle project.