TSMC Reportedly Begins Small-Scale Production in Arizona for Apple’s A16 with the N4P Node

[fansink]

In early September, rumors have it that TSMC’s first US fab in Arizona began producing engineering wafers using the 4nm process in April, with yields reportedly comparable to those manufactured in its Southern Taiwan Science Park facility. Now here’s the latest update: the fab has started trial production for Apple’s A16 chip, according to a report by MoneyDJ.

The report notes that the mobile processors are manufactured with TSMC’s 5nm, or the so-called N4P node, which is the same as the node used in Taiwan to manufacture A16. The N4P node is actually a member of the 5nm family, as it is regarded as an enhanced version of 5nm, the report explains.

It is worth noting that Apple’s A16 SoC, though launched two years ago with iPhone 14 Pro, is considered as one of the most advanced mobile chips for the company, as the chip is also be seen in iPhone 15 and iPhone 15 Plus models. MoneyDJ indicates that the move marks a milestone that instead of beginning with some less critical chips, Apple and TSMC intend to aim high from the start.

According to the report, Apple’s A16 is currently being trial-produced at TSMC Arizona’s “Fab 21” Phase 1 facility, with a small production volume. However, once the second stage of the Phase 1 fab is completed, the output will significantly increase.

TSMC plans to build three plants in Arizona, each with cleanroom spaces twice the size of typical logic fabs in the industry. The first fab is expected to begin mass production in the first half of 2025.

TSMC’s second fab in Arizona will use 2nm process technology to meet strong AI-related demand, with production expected to begin in 2028. The third fab will employ 2nm or even more advanced process.

[News] TSMC Reportedly Begins Small-Scale Production in Arizona for Apple’s A16 with the N4P Node | TrendForce Insights

In early September, rumors have it that TSMC’s first US fab in Arizona began producing engineering wafers using the 4nm process in April, with yields ...

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[BruceA]

A16 wow isn’t that two tiers old technology. Apple has moved on to A17 last year and A18 this year.

LinkedIn has many post about success posted by employees, so I can assume this is true and not a rumour.

The bigger question is what product this old chip going into and what Apple signed up to pay from this very late and very expensive fab.

Hard to believe re owed Apple negotiators accepted non needed chips at premium pricing, LOL

 

[hist78]

A16 wow isn’t that two tiers old technology. Apple has moved on to A17 last year and A18 this year.

LinkedIn has many post about success posted by employees, so I can assume this is true and not a rumour.

The bigger question is what product this old chip going into and what Apple signed up to pay from this very late and very expensive fab.

Hard to believe re owed Apple negotiators accepted non needed chips at premium pricing, LOL

1. Yes, the A16 is still very useful.

The Apple A16 Bionic is used in the iPhone 14 Pro, 14 Pro Max, 15, and 15 Plus. If we check Verizon's online store, they are still selling new iPhone models as far back as the iPhone 12. I believe the iPhone market in other countries is likely in a similar situation.

2. Is it too expensive for Apple to use chips made by TSMC Arizona? Not necessarily. Cost more? Maybe, but it's manageable.

For many multinational companies, sourcing from different countries with varying cost structures is quite normal. Apple, like 3M, Nestlé, McDonald's, and Pfizer, may pay different amounts to source or manufacture the same components or services from various countries for economic, supply chain, political, or strategic reasons. Apple focuses on managing the overall global cost structure to remain competitive.

When TSMC began building its Arizona fab, Apple, AMD, Nvidia, Qualcomm, and Broadcom all committed, fully aware of the cost and logistical implications.

 

[hist78]

 

[user nl]

From Tim Culpan:

https://timculpan.substack.com/p/copy-tsmc-v-intel-in-two-charts-correct

 

[Mooredaddy]

A16 wow isn’t that two tiers old technology. Apple has moved on to A17 last year and A18 this year.

LinkedIn has many post about success posted by employees, so I can assume this is true and not a rumour.

The bigger question is what product this old chip going into and what Apple signed up to pay from this very late and very expensive fab.

Hard to believe re owed Apple negotiators accepted non needed chips at premium pricing, LOL

Reductive to say it’s “old”. It’s on n5 which is very much the majority of tsmc’s revenue

 

[fansink]

Reductive to say it’s “old”. It’s on n5 which is very much the majority of tsmc’s revenue

You are correct, TSMC's Fab 21 will be fabricating both 5nm and it's enhanced 4nm, which as of 2Q24 was 35% of total revenue.

 

[MKWVentures]

Does most of Apples phone unit sales in 2024 come from products on N4,5? The have a pretty good tiering plan to sell older models.

 

[siliconbruh999]

I think M2 is in production alongside iPhone 14 even now

 

[BruceA]

You are correct, TSMC's Fab 21 will be fabricating both 5nm and it's enhanced 4nm, which as of 2Q24 was 35% of total revenue.

Don’t confuse total revenue to demand for the node for certain customer.

In Apple’s case they dominate the leading edge. All their new models of phones ones that generate the lines at the Apple Storesis all on N3 and most of this years holiday thru the next year launch is all N3. Yeah, I am sure the deals on the iPhone older models drives some drivel, probably enough to absorb the volume in Fab21. It’s interesting that Apple would accept I higher BOM as they are renowned for being the most hard @$$ on their vendors for pennies.

BTW I think k TSMC has stated they are doing only 4nm currently

 

[samwilde]

Do not say I did not tell you so. Maybe they will have more luck fabbing leading edge CPU and GPUs from AMD and NVIDIA. Turns out the desktop version of AMD Zen 5 is still using N4X. The N3E is only used in the Zen 5c server chips.