TSMC to make 5G modems for Apple iPhones in 2023

Besides making chipset for Apple devices, TSMC has signed a new deal to manufacture 5G modems in 2023

Back in May, a report had emerged that Apple has chalked out plans to manufacture its own 5G modem and be ready to incorporate them in the iPhones launching in 2023.

However, there was no information on who would be the supply partner for Apple. Now, Nikkei Asia has learned that the company's long-time A-series chipset-maker Taiwan Semiconductor Manufacturing Co.(TSMC) sealed a deal to manufacture the 5G modems.

Despite the chipset supply constraints around the world, Apple is the least affected among the technology companies. With a clear strategy in place to take care of future requirements, the Cupertino-based company has been a step ahead and seen selling its products with less delay in shipments compared to rival brands.

It should be noted Apple and Qualcomm had a long battle over modem pricing and licensing fee issues and out of the blue, dropped all litigations against each other in 2019. They sealed a deal including a six-year license agreement with Qualcomm and an option to extend for two years for procuring modems for iPhones.

But, within less than a year of the signing, Apple acquired a majority stake of Intel's smartphone modem division for $1 billion. The deal included 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation.

This was done to end the dependence on Qualcomm and now, Apple is on course to accomplish self-reliance on designing and manufacturing of a major component of iPhones, iPads, and Watches.

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