Apple Poses a Dilemma for Samsung... TSMC Wins iPhone 14 Communication Chip Order

Taiwan Media: "TSMC is the Sole Supplier of iPhone 14 5G RF Chips"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Park Sun-mi] Taiwanese foundry (semiconductor contract manufacturing) company TSMC will supply all 5G RF chips for Apple’s iPhone 14, scheduled for release in the second half of this year. It is pointed out that the competitive relationship between Samsung and Apple in the smartphone market is disadvantageous to Samsung in the semiconductor chip order competition between Samsung and TSMC, which is a challenge Samsung must solve.

On the 24th, Taiwanese media reported that TSMC was selected as the sole supplier of the 5th generation mobile communication (5G) radio frequency (RF) chips to be installed in the iPhone 14, and the chips will be produced using TSMC’s 6nm process. Annual demand is expected to exceed 150,000 units.

With the advent of the 5G era, the introduction of ultra-fine processes for RF chips is becoming increasingly important. When TSMC announced its 6nm RF chip process last year, it claimed that it could improve performance by more than 16% compared to the previous generation 16nm process. The more ultra-fine processes are introduced, the lower the smartphone power consumption, and the battery space can be increased by the reduced chip size, resulting in improved battery performance.

Taiwanese media emphasize the significance of TSMC pushing Samsung Electronics out of the RF chip market by securing all orders for the 5G RF chips installed in the iPhone 14. Until now, Apple has relied on Qualcomm for communication chips, and Qualcomm, which only designs semiconductors, has divided production between Samsung Electronics and TSMC. However, recently, Apple has strengthened direct cooperation with TSMC, narrowing Samsung Electronics’ position.

From Samsung Electronics’ perspective, Apple, a competitor in the smartphone market, strengthening its close relationship with TSMC could be a burden. Although Apple still serves as a customer for Samsung’s memory semiconductors, the 5G competition is intensifying, so Samsung cannot afford to give up in the communication chip sector.

An industry insider said, “The competitive relationship between Samsung and Apple in the smartphone market is working against Samsung in the foundry market competition between Samsung and TSMC. From Apple’s standpoint, it is inevitable to get closer to TSMC rather than its competitor Samsung, which is also a challenge Samsung must solve.”

TSMC’s aggressive move toward ultra-fine processes leading to performance improvements in the iPhone is another aspect Samsung needs to pay attention to. Another insider said, “If Apple compensates for the short battery life in 5G mode by installing next-generation RF chips in the upcoming iPhone 14, it is highly likely that Apple will actively promote this advantage.”

This content was produced with the assistance of AI translation services.