TSMC's Chip Revenue From Apple Predicted to Grow Nearly 25% in 2022 as Apple Silicon Transition Nears Completion

Chip supplier TSMC's Apple business is predicted to grow almost 25 percent this year as the transition to Apple silicon nears completion and the two companies grow closer ties, DigiTimes reports.

Apple is said to be expecting shipments of chips for new iPhones and other devices from TSMC in the first half of June, according to sources speaking to DigiTimes. In addition to year-on-year growth of chips for iPhones in 2022, TSMC is also expected to "substantially" grow its shipments of M-series chips as Apple completes the transition to its own custom silicon chips and "will this year totally wean itself off Intel CPUs for its Mac series."

The report added that TSMC is expected to remain Apple's sole chip supplier for the foreseeable future, with Samsung experiencing problems with advanced process yield performance and Intel unlikely to receive orders from Apple.

In total, TSMC is estimated to make $17 billion in revenue singularly from fulfilling Apple orders in 2022, up from $13.8 billion in 2021. Although Apple's semiconductor manufacturing supply chain "remains little affected" by ongoing lockdowns in China, other parts of Apple's supply chain may be severely impacted depending on how long lockdowns persist, which the report speculates could lead to Apple being forced to delay the launch of new iPhone models this year.

Moreover, Apple is said to have already placed orders for 2nm chips to be fulfilled by TSMC in 2025. The report also claims that Apple and TSMC are jointly developing 1nm chips for use in augmented-reality head-mounted devices and Apple's vehicle project.