Apple COO Jeff Williams reportedly paid a recent secret visit to TSMC CEO C.C. Wei to discuss reserving the first batch of the semiconductor manufacturer’s 2-nanometer production capacity. The new technology could prove vital not only for Apple to continue improving the performance of its M-series chips, but also to catch up with the competition in artificial intelligence (AI).
Sources from the Taiwanese news outlet Economic Daily reported the meetings under the condition of anonymity. This is standard practice with Apple, since the iPhone-maker almost never discloses its negotiations with suppliers.
The Cupertino-based tech company has recently begun making inroads in the AI server world, developing its own AI chips for its data center servers. These servers would be required to handle artificial intelligence processing too complex to be handled on-device on an iPhone or iPad. Rumors suggest that iOS 18, expected to debut this fall, will lean heavily into AI models, akin to what Android has adopted by way of Gemini Nano.
Previously, Apple CFO Luca Maestri confirmed that the tech giant maintains its own data centers that could be used for AI purposes. While the company also enlists third-party data centers, Maestri clarified Apple’s plan to continue building its own data centers. The financial executive also confirmed that Apple has invested over $100 billion in generative AI research and development over the past five years.
Apple already employs TSMC’s 3-nanometer process for its M4 System-on-a-Chip (SoC), which integrates a more powerful Neural Processing Unit than previous generations. To further develop AI capabilities, Apple will reportedly develop three additional levels of the M4 SoC. These chips, codenamed Donan, Brava, and Hydra will offer more AI processing power to help Cupertino catch up in the field.
The new versions of the M4 chip are expected to enter mass production during the second half of 2024. Apple’s purchase of the first production capability of the 2-nanometer process means the potential for TSMC’s annual revenue to climb to an all-time high, NT$600 billion (approximately USD $18.6 billion). Over time, Apple’s business with TSMC could help the chipmaker reach an annual revenue of NT$1 trillion (USD $31 billion).
Neither Apple nor TSMC responded to inquiries about the nature of Williams’ visit to Taiwan.
