Memory crisis causes $1 billion Apple chip backlog at TSMC

A deepening memory crisis involving DRAM and NAND Flash chips is impacting the semiconductor industry and consumer electronics. Industry forecasts suggest that the shortage will persist and likely intensify over the next year, leading to rising hardware prices for smartphones and PCs.

The shortage has significant operational consequences for major manufacturers. TSMC is reportedly holding approximately $1 billion worth of Apple System-on-Chip (SoC) units that cannot be packaged due to a lack of sufficient DRAM. This bottleneck threatens the timely production and availability of upcoming device generations, including upcoming iPhone models.

To mitigate these challenges, Apple is reportedly working to secure supplies from major memory manufacturers including Micron, SK hynix, and Samsung. Additionally, there are reports that Apple may be exploring negotiations with Chinese manufacturer CXMT to increase its supply of memory components.