'They're now $7 billion dollars behind in royalties. 'They're trying to destroy our business,' Qualcomm lawyer Evan Chesler said at the hearing in federal court in San Diego. The 'A13' will likely be a 7nm+ chip with extreme ultraviolet lithography (EUV), with volume production expected to begin in the second quarter of 2019, in time for a fall iPhone launch next year.īeyond that, TSMC recently confirmed that it plans to invest $25 billion towards volume production of 5nm chips by 2020, so there's a good chance that Apple will rely on the Taiwanese chipmaker for the foreseeable future.Īpple owes $7 billion in royalties to Qualcomm since halting payments because of its ongoing dispute with the mobile chip maker over unfair licensing practices, according to a court hearing on Friday (via Bloomberg).Īpple began withholding the payments through its manufacturers last year, after the tech giant filed a lawsuit against Qualcomm claiming that the chipmaker was charging unfair royalties for 'technologies they have nothing to do with.' However, Qualcomm maintains its technology 'is at the heart of every iPhone,' and that the royalties are entirely valid. TSMC has been gradually shrinking the size of its dies over the years as it continues to refine its manufacturing process: A10 Fusion is 16nm, A11 Bionic is 10nm, and this year's 'A12' is expected to be a 7nm chip. Standard Client ContractTSMC's packaging offerings are widely considered to be superior to that of other chipmakers, including Samsung and Intel, so it won't be surprising if that exclusivity continues with the 'A13' chip in 2019.
Multiple reports indicate TSMC will also be the exclusive supplier of the 'A12' chip in 2018 iPhones. 'As long as TSMC continues to offer something new at leading-edge every year and continues to execute well on yield, I could see Apple remaining sole source on foundry at TSMC for years to come,' Arete Research analyst Brett Simpson said in an interview with EE Times.TSMC has been Apple's exclusive supplier of A-series chips since 2016, fulfilling all orders for the A10 Fusion chip in the iPhone 7 and iPhone 7 Plus, and the A11 Bionic chip in the iPhone 8, iPhone 8 Plus, and iPhone X.
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