Apple’s high reliance on TSMC could backfire.
TSMC owns more than 50% of the market share in semiconductor manufacturing and Apple is its largest customer. This partnership could definitely backfire.
In this post, you will see why TSMC is an important company right now, the history of Apple & TSMC’s partnership, and finally why this partnership could backfire.
Role of TSMC in the semiconductor world
The Taiwan Semiconductor Manufacturing Company is arguable the most important company right now in the world amidst the chip shortage. TSMC is dedicated to manufacturing chips that are designed by other companies, which is no easy job. Chip manufacturing is extremely costly and precise. A single foundry or factory could cost a company north of billion dollars so it is no surprise that there aren’t many competitors in this domain.
With the whole world depending on TSMC’s chip manufacturing technology amidst ongoing chip demand and possible China-Taiwan war, Apple’s high reliance on this Taiwan company could become a problem.
While Intel has repeatedly failed to deliver its own 7nm chips, TSMC has mastered manufacturing 5nm chips with a low defective rate. In…
