Apple's Moves into AI with TSMC

Apple's Moves into AI: Developing AI Chips and Servers with TSMC

Apple is reportedly advancing its AI ambitions by collaborating with silicon chip manufacturer TSMC to produce its own AI desktop and server processors and develop an in-house AI processor for mass production in the second half of 2025. This information comes from a leak originating from a Weibo user known as "Phone Chip Expert," suggesting that Apple's AI processor could leverage TSMC's advanced 3-nanometer node technology. While the credibility of such leaks is often questioned, Phone Chip Expert has a track record of accurately predicting Apple's product features, lending credence to these rumors.

The potential collaboration between Apple and TSMC highlights the tech giant's commitment to self-sufficiency in cloud computing processes. With the increasing prevalence of AI-driven technologies, including Apple's upcoming on-device large language model (LLM), the company aims to exert greater control over its data processing operations. By developing its own AI chips and servers, Apple can ensure optimal performance, privacy, and oversight over AI-driven processes.

Reports indicate that Apple is not only working on an AI server processor but also developing its first in-house AI processor for PCs, dubbed the M4 chip. Mass production of Apple's AI server processor is expected to commence in the second half of 2025, potentially utilizing TSMC's advanced "N3E" process. This move could have significant implications for TSMC, as Apple's aggressive push into AI-driven technologies could drive demand for its advanced process orders.

Apple could utilize its own AI processors to enhance the performance of its data centers and future AI tools that rely on the cloud. While Apple is rumored to prioritize on-device processing for many of its upcoming AI tools, some operations will inevitably have to occur in the cloud. By the time the custom processor is integrated into operational servers in late 2025, Apple's new AI strategy should be well underway.

Furthermore, industry sources indicate that Apple's development of AI server processors will boost momentum for TSMC's advanced process orders. Assembly orders for related AI servers are anticipated to be undertaken by Foxconn, solidifying its position as a key player in Taiwan's manufacturing landscape. With Apple's full-scale push into the AI field and plans to introduce AI features in its new iPhone models, rumors abound regarding the launch of Apple's own developed AI chip.

Apple's collaboration with TSMC to develop AI chips and servers signifies its strategic investment in AI-driven technologies. As the tech industry increasingly relies on AI for innovation and differentiation, Apple's endeavors in this space underscore its commitment to shaping the future of technology.