Apple is reportedly scrambling to secure LPDDR5X memory for the upcoming iPhone 18 and foldable iPhone Ultra, creating a supply chain bottleneck that threatens to delay launches scheduled for later this year. This disruption matters because it forces Apple to rely on emergency procurement strategies rather than planned inventory, potentially impacting device availability for consumers expecting the new hardware. The core issue stems from a mismatch between chip readiness and component availability, leaving production lines in limbo.
TSMC holds $1 billion in A20 chips while Apple scrambles for memory
The iPhone 18 will be powered by the 2nm A20 system-on-chip, which utilizes Integrated Fan-Out Package on Package (InFO-PoP) technology to integrate memory directly above the processor. This packaging method reduces the physical footprint of the device but requires precise synchronization between the A20 chips and the LPDDR5X DRAM modules. According to journalist Tim Culpan, the situation is getting dire, with Apple scrambling to secure memory for its big iPhone 18 and foldable iPhone Ultra launch that is weeks away.
- SoC Process: 2nm
- SoC Name: A20
- Packaging Technology: InFO-PoP
- Memory Type: LPDDR5X
TSMC is reportedly holding on to over $1 billion of excess inventory of A20 chips because it is still waiting on DRAM to complete packaging. The launch is reportedly six weeks away, with TSMC requiring two weeks to complete the packaging process once the memory arrives. Apple normally relies on Micron, SK Hynix, and Samsung for LPDDR5X memory, but the current shortage suggests a deviation from standard supply chains. It is unclear what happened to the memory Apple expected to have ready, though it is safe to assume the company did not simply forget to order DRAM this close to a potential launch.
Apple previously attempted to secure cheaper DDR5 pricing from Chinese manufacturer CXMT, but that deal fell through before the current crisis. The rejection of this deal may have contributed to the current shortage, although the article does not explicitly state it as the sole cause. We've been tracking iPhone 18 closely — see our earlier coverage on iPhone 18 Pro to Feature True Variable Aperture and 2nm A20 Pro Chip for additional context on the A20 series. The company faces a tight window to resolve these component issues before the final assembly phase begins.
Apple must resolve the DRAM shortage to meet the six-week timeline for the iPhone 18 and iPhone Ultra launches. The $1 billion in A20 chips waiting at TSMC highlights the scale of the disruption and the financial risk involved in supply chain delays. Consumers should expect potential availability issues or revised launch dates if the memory procurement does not stabilize quickly.
Source: TweakTown
