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Apple and automakers will reportedly get priority at TSMC amid global chip shortage

By Kenny Yeo - on 23 Jun 2021, 9:08am

Apple and automakers will reportedly get priority at TSMC amid global chip shortage

(Image source: TechPowerUp)

A report from DigiTimes claims that Taiwanese chip maker TSMC will prioritise its production to meet demand from Apple and automakers in the third quarter of this year, followed by orders for PCs, servers, and networking devices.

This is hardly surprising given that Apple is easily TSMC's largest customer. Analysts believe Apple accounts for around 25% of TSMC's total revenue last year.

That's well ahead of other large customers like NVIDIA and AMD which are believed to have contributed around 6% to 9% each to TSMC's total revenue in 2020.

TSMC is the sole supplier of Apple's A-series and M-series chips that go into iPhones, iPads, and Macs.

However, a device is more than just Apple-designed chips and CEO Tim Cook said during Apple's last earnings call that they are constrained by the supply of chips of "legacy nodes", which could ultimately still constrain the supply of products.

In fact, some believe that the ongoing chip shortage was the reason why Apple didn't unveil its rumoured new MacBook Pros at WWDC 2021.

Source: DigiTimes via 9to5 Mac

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