Apple Supplier TSMC Says Global Chip Shortage Likely to Last into 2022

Apple supplier TSMC today said it is doing all it can to increase productivity and alleviate the worldwide chip shortage, but that tight supplies will likely continue into next year (via Reuters).

tsmc semiconductor chip inspection 678x452
The comments followed a reported 19.4% rise in the Taiwanese firm's first-quarter profit, which beat market expectations, thanks to strong chip demand and a global shift to home working.

TSMC did not mention Apple specifically, but it is a major Apple supplier and this suggests that the ongoing chip shortage could continue to impact Apple. TSMC produces A-series chips for the iPhone, iPad, and Apple silicon chips for the Mac. Foxconn, another Apple supplier, said in March that it expects the global chip shortage to extend into the second quarter of 2022.

An earlier report claimed Apple is facing a global shortage of certain components for some of its MacBook and ‌iPad‌ models, which is causing the Cupertino tech giant and its suppliers to postpone production of the products. Samsung is also said to be feeling the impact in its production of OLED displays, which Apple uses in its iPhones.

The ongoing chip shortage was caused by supply chain issues that arose during the global health crisis and weather-related events like the freeze in Texas that shut down Austin chip plants.

As chip factories struggled to keep up with standard outputs during the pandemic, demand surged as people purchased devices for an at-home lifestyle, leading to higher prices. As a result, electronics companies bought up all available supply, leading chip makers to run at capacity.

TSMC's business was initially boosted by the shortage, but it is now impacting manufacturers of high-performance computing (HPC) products like smartphones and laptops.

"Our first-quarter business was supported by HPC-related demand, balanced by a milder smartphone seasonality than in recent years," said Vice President and Chief Financial Officer Wendell Huang, referring to high performance chips.

"Moving into second quarter 2021, we expect our revenue to be flattish, as HPC-related demand will continue to grow, offset by smartphone seasonality."

At its earnings briefing, TSMC said it expects to post revenues of between $12.9 billion and $13.2 billion in the second quarter of 2021, which is a 1% sequential increase at the midpoint.

TSMC said this month it plans to invest $100 billion over the next three years to significantly expand its production capacity to meet ever-increasing demand. The new investment came the same week that Apple reportedly booked all of TSMC's production capacity for 4nm process chips, which are expected to be used in "new generation" Mac computers.

Tag: TSMC

Popular Stories

iPhone 17 Pro 3 4ths Perspective Aluminum Camera Module 1

New iPhone 17 Pro Details: Brighter Display, Best Battery Life, and More

Wednesday September 3, 2025 5:33 am PDT by
Apple's iPhone 17 Pro and iPhone 17 Pro Max models will feature a number of significant display, thermal, and battery improvements, according to new late-stage rumors. According to the Weibo leaker known as "Instant Digital," the iPhone 17 Pro models will feature displays with higher brightness, making it more suitable for use in direct sunlight for prolonged periods. The iPhone 16 Pro and...
iPhone 17 Pro Iridescent Feature 2

iPhone 17 and iPhone 17 Pro Prices Estimated Ahead of Apple Event Next Week

Tuesday September 2, 2025 1:50 pm PDT by
Just one week before Apple is expected to unveil the iPhone 17 series, an analyst has shared new price estimates for the devices. Here are J.P. Morgan analyst Samik Chatterjee's price estimates for the iPhone 17 series in the United States, according to 9to5Mac: Model Starting Price Model Starting Price Change iPhone 16 $799 iPhone 17 ...
Apple Watch Ultra 2 Complications

Apple Watch Ultra 3 Coming Next Week: Eight Reasons to Upgrade

Thursday September 4, 2025 7:38 am PDT by
We're only days away from Apple's "Awe dropping" fall event scheduled to take place on Tuesday, September 9 – and along with the new iPhone 17 series, we're going to get a new version of the Apple Watch Ultra for the first time since 2023. By the time the Ultra 3 is unveiled, it will have been two years since the previous model arrived. The intervening period has left plenty of room for...
iPhone 17 Pro Iridescent Feature 2

iPhone 17 Pro Clear Case Leak Reveals Three Key Changes

Sunday August 31, 2025 1:26 pm PDT by
Apple is expected to unveil the iPhone 17 series on Tuesday, September 9, and last-minute rumors about the devices continue to surface. The latest info comes from a leaker known as Majin Bu, who has shared alleged images of Apple's Clear Case for the iPhone 17 Pro and Pro Max, or at least replicas. Image Credit: @MajinBuOfficial The images show three alleged changes compared to Apple's iP...
iPhone 17 Pro Dark Blue and Orange

iPhone 17 Release Date, Pre-Orders, and What to Expect

Thursday August 28, 2025 4:08 am PDT by
An iPhone 17 announcement is a dead cert for September 2025 – Apple has already sent out invites for an "Awe dropping" event on Tuesday, September 9 at the Apple Park campus in Cupertino, California. The timing follows Apple's trend of introducing new iPhone models annually in the fall. At the event, Apple is expected to unveil its new-generation iPhone 17, an all-new ultra-thin iPhone 17...
iPhone 17 AIR Loud Feature

iPhone 17 Air Could Start at $1,099 With 256GB Storage, 1TB for $1,499

Thursday September 4, 2025 2:54 am PDT by
Apple's upcoming iPhone 17 Air will have a $1,099 starting price providing 256GB of base storage and will max out at $1,499 with a 1TB option, according to the latest TrendForce report. Apple will offer three price/storage tiers for the all-new ultra-thin iPhone 17 model, which replaces last year's iPhone 16 Plus in the lineup. Here's how TrendForce sees them breaking down: 256GB — $1099...

Top Rated Comments

ingambe Avatar
57 months ago

That’s sad. 2022? Why so long.
You don't build a chip factory in a few months unfortunately
So the capacity for the next year is fixed but the demand has increased
Score: 7 Votes (Like | Disagree)
ksec Avatar
57 months ago
Let's just get one thing straight. ( Somehow Mainstream media likes to keep repeating the same narrative ) It doesn't impact "Apple Silicon". There are no seriously shortage of leading edge 5nm Capacity unless Apple all of sudden decide to sell 150M iPhone 12 / 13 from their usual ~100M.

It impact Apple because other component within their devices are all made in TSMC. ( Not Qualcomm Modem... yet ) And those may not be in a good position to find capacity.

But I am willing to bet Apple and TSMC will smooth these out specific to Apple's order behind the sense. What is the point of having enough A14, when you dont have enough of other component holding you back. Basically it will be the rest of the industry that suffer most.

If people dont understand how this work, just look back at Toilet paper during the pandemic. It is the same thing, roughly described as Bullwhip effect.

https://searcherp.techtarget.com/definition/bullwhip-effect
Score: 5 Votes (Like | Disagree)
contacos Avatar
57 months ago
This will probably lead to a price increase of the end product too
Score: 3 Votes (Like | Disagree)
Sasparilla Avatar
57 months ago

Can’t understand why another chip manufacturing plant hasn’t shown up yet? Competition? Let’s drive prices down and innovation up not create another bloated company.
Because it takes years to plan and build out chip fabrication factories and TSMC is ahead of everyone else in the industry despite money and effort (Intel just released their latest desktop chips at the same size 14nm they had when the iPhone 6s came out). Intel had originally planned on going to 10nm in 2015. Samsung is having trouble with their latest process (this is why nVidia gpu's are barely a trickle) that is actually slightly bigger (less advanced) than the one TSMC has been using on the iPhone 12's CPU. Seems its alot of art in there with the science.

Demand went way up with everyone at home as well (and you can't build chip factories that quick). In amongst this the U.S. government (prior admin) restricted use of the big Chinese fab company (don't remember the name) so that took some capacity away. Bit of a train wreck looking at it all.
Score: 2 Votes (Like | Disagree)
0924487 Avatar
57 months ago
Literally every other manufacturing sector is experiencing overcapacity, yet the chips we can‘t seem to live without can‘t be fabricated fast enough. We need more collaboration and growth in this sector.
Score: 1 Votes (Like | Disagree)
ksec Avatar
57 months ago

Can’t understand why another chip manufacturing plant hasn’t shown up yet? Competition? Let’s drive prices down and innovation up not create another bloated company.
Drive Price Down? Seriously? Wafer Price from TSMC is "ridiculously" inexpensive, if not cheap for what is on offer.

Bloated Company? Seriously? TSMC innovation and efficiency is unrivalled in the industry.
Score: 1 Votes (Like | Disagree)