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On March 2, DigiTimes reported that suppliers in Apple's iPhone supply chain said that the iPhone 15 Pro series of phones launching this year could trigger demand from older users to switch to the A17 processor, Apple's first iPhone chip made using TSMC's 3nm process, which offers significant performance and efficiency improvements. The report quotes suppliers as saying

TSMC's N3E (3nm Enhanced) technology will enable a significant upgrade in the specifications of the next generation iPhone series, and vendors involved in the iPhone supply chain expect the launch of the new device in 2023 to spur switch demand, the report said, citing suppliers.

As previously reported, Apple is likely to use TSMC's 3nm technology to make the A17 bionic chip this year, which is expected to be available on the iPhone 15 Pro and iPhone 15 Pro Max models.

The first-generation 3nm process (also known as N3) is known to be 35% more power efficient than TSMC's N4 process, which is based on a 4nm process. The N4 process is used to create the A16 bionic chip that powers the iPhone 14 Pro and Pro Max. N3 technology also enables a significant performance increase over current 4nm-based chips.

Despite the high manufacturing costs, Apple has reportedly taken all initial orders for TSMC's first generation 3nm technology. This also means that other smartphone manufacturers such as Samsung are willing to wait for prices to drop before adopting the process, with the Android market expected to face tough conditions in 2023 amid global economic turmoil.

Apple's faster A17 chip will only be used in the iPhone 15 Pro and Pro Max, while the regular iPhone 15 and Plus versions will use the A16 chip that was previously used in the iPhone 14 Pro and Pro Max. TSMC is set to begin volume production of N3E - an enhanced version of N3 technology - in the second half of this year, and expects Apple to remain the first customer to adopt the process.

The iPhone 15 series is expected to feature USB-C instead of Lightning, solid-state volume and power buttons for the Pro series, new periscope camera technology and more.