Even though a lot of companies are holding back due to the COVID-19 pandemic, TSMC is reportedly on track to begin mass production for the 5nm chips this April. This is the chip that Apple will use for its iPhones although the Cupertino company has requested them to hold off for now due to the coronavirus.
According to Digitimes, Apple requested TSMC to delay production by one or two quarters with the pandemic causing problems to the world. Businesses are taking a big hit and Apple is fully aware of the repercussions this brings. They are expecting sales drops this year even once the pandemic gets resolved.
In a previous post, the Cupertino is reportedly planning to delay the launch of the iPhone 12 with concerns that it may not be the right time to reveal a new device. Most are cash-strapped and expected to prioritize more important needs, meaning spending huge on a new iPhone will not be on a consumer's agenda looking ahead.
There are ongoing discussions on possibly delaying the launch of the iPhone 12 with Apple closely monitoring the world situation. The United States and Europe have been hit hard by the coronavirus with cases of infections and death rising daily. Apple has felt the effect of the pandemic, forced to allow employees to work from home.
Hearing TSMC getting ahead of schedule and buckling down to mass-produce the chips may come a bit of a surprise. Manufacturing lines are allegedly fully booked for 5nm chips despite the problems caused by the coronavirus. The semiconductor company may be simply trying to stock up and make sure that orders from Apple are already ready once the Cupertino company is ready to resume normal operations. TSMC has been one of Apple's exclusive suppliers of A-series chips since 2016, essential components that play a part in the availability of iPhones. A concern here would be possible oversupply of the chips. If so, these could be either losses or something Apple could use for future planned devices.
There is no telling if Apple has any say in the operations of TSMC with concerns over the marketability of the iPhone 12. Four iPhone 12 variants were originally set for release in the fall. But with more pressing matters caused by the pandemic, moving the planned launch date is looming. There is a chance that the iPhone 12 may not be revealed in 2020 at all unless some good news related to COVID-19 pandemic containment comes out soon.
