Apple’s COO held secret negotiations with TSMC regarding the production of AI Chips.

Apple’s Initial Move into Proprietary AI Chips

Apple’s recent decision to integrate their in-house processor, M2 Ultra, into their server infrastructure might be just the first step in developing specialized chips designed to accelerate artificial intelligence (AI). According to rumors, an Apple representative recently visited Taiwan to negotiate the possibility of AI-chip production with TSMC.

Secretive Meetings with TSMC

As reported by Economic Daily News, Apple’s Chief Operating Officer, Jeff Williams, during his trip to Taiwan, met with TSMC’s CEO, C.C. Wei. The meeting, which was kept undisclosed, is believed to have been centered around discussing the potential for TSMC to contract manufacture Apple’s proprietary server system AI chips. The two company heads also explored TSMC’s capabilities in chip packaging and testing complex spatial layouts. Recently, such operations have been primarily catered towards meeting Nvidia’s demand for computation accelerator chips.

Apple’s Projected Use of Potential Server Chips

Apple plans to use the potential server chips in their computing infrastructure, but due to their high manufacturing costs, they won’t be marketed for consumer devices; they won’t appear on the open market. Apple remains one of TSMC’s largest clients, traditionally having the first access to their contractor’s new processes. This year, some experts estimate TSMC’s revenue from services provided to Apple to approach a record $19 billion.

This post was last modified on 05/21/2024

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