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On 22 February, the Business Times published a blog post yesterday (21 February), reporting that the A18 chip used in Apple's iPhone 16e is built using TSMC's second-generation 3nm process, N3E, while the baseband modem in the C1, a self-developed 5G chip, is built using a 4nm process, and the receiver is built using a 7nm process, all of which are OEM'd by TSMC.

The A18 chip at the heart of Apple's iPhone 16e (6-core CPU+4-core GPU) is built on TSMC's N3E process and utilises TSMC's InFO-PoP packaging technology, with its advanced neural network engine (NPU) powering Apple Intelligence features, the news said.

As for the C1, Apple's first in-house 5G chip, the baseband modem portion is made on a 4nm process and the receiver is made on a 7nm process, both of which are OEM'd by TSMC. Similar to the likes of Qualcomm and MediaTek, which integrate modems into their SoCs, Apple's C1 chip reduces licensing fees and improves energy efficiency.

As Apple's most affordable AI phone, the iPhone 16e is expected to ship 22 million units in 2025, providing strong growth momentum for TSMC, which plans to integrate the C1 chip into the Apple Watch and iPad by 2026, with plans to expand to the Mac.

Citing a blog post, Apple is working on its next-generation ‘Ganymede’ modem, which will debut next year and switch to a 3nm process, followed by the third-generation ‘Prometheus,’ both of which are also likely to be made by TSMC. Qualcomm expects that next year its

For its part, Qualcomm expects its share of Apple's modems to drop to 20 percent next year, down from 100 percent today, even though it has a technology licensing agreement with Apple that runs until at least 2027. Apple's move to develop its own chips could have far-reaching implications for its supply chain and competitive landscape.