TSMC Starts Building Chips for Next-Gen iPhones

TSMC Starts Building Chips for Next-Gen iPhones
Apple

TSMC has started production of a new chip for Apple’s next line of iPhones launching later this year, according to Bloomberg, citing people familiar with the matter.

The processor, dubbed A13, went into early test production in April and mass-production is planned for as early as this month, the people said, asking not to be identified. As part of its annual iPhone refresh, Apple typically includes significant upgrades to the main processor, boosting speeds and battery life. The company’s chips are often ranked as top performers by analysts and technical websites. That helps set the iPhone apart from its Android-based competition, which relies heavily on Qualcomm processors. Some rivals, such as Samsung and Huawei, have embraced Apple’s approach and now make phones using their own chips.

The U.S. company is extending its in-house design strategy: The iPhone is one of several Apple devices that include custom processors. The company designs similar parts for the Apple Watch, Apple TV, AirPods and HomePod. It also makes specialized chips for Macs and is working on a main Mac processor to eventually replace those supplied by Intel Corp., Bloomberg News has reported.

Traditional central processors are not always the best solution for new tasks such as image and voice recognition. In recent years, Apple has added new components to its chips, including parts that handle graphics and machine learning. It’s also planning other new types of chips, including a cellular modem for making calls and connecting to the internet, and power components based on a recent deal with Dialog Semiconductor.

This year’s new iPhone chips will be featured in all three new models, successors to the iPhone XR, iPhone XS and iPhone XS Max, according to the people familiar with the matter. The new high-end models are code-named D43 and D44, while the update to the iPhone XR is internally dubbed N104, they said. All three new iPhones will look similar to the current versions, but the iPhone XS and iPhone XS Max updates will gain a third rear camera. The iPhone XR successor will get a second camera on the back.

Apple also plans a feature that lets users charge the latest AirPods and other devices by putting them on the back of the new iPhones. That’s similar to a feature Samsung offers on its newest devices, the people said.