Apple is set to compete with NVIDIA for TSMC’s 3D packaging capacity with its upcoming M5 or M6 Ultra chips.
Apple and NVIDIA are set to become direct rivals for TSMC’s advanced chip packaging capacity, as both technology giants push towards more complex and powerful custom processors, raising concerns over future supply bottlenecks.
Until recently, the two companies operated largely in separate lanes within TSMC’s manufacturing ecosystem. Apple relied on leading edge process nodes and Integrated Fan Out packaging for its A series chips, while NVIDIA used older process technologies combined with Chip on Wafer on Substrate packaging for its graphics processors. That separation is now narrowing as both firms adopt more aggressive chip designs.
Apple is expected to compete with NVIDIA for the same 3D packaging resources at TSMC with its upcoming M5 Ultra or M6 Ultra processors. Industry analysts say Apple is transitioning towards more advanced packaging technologies, including Wafer Level Multi Chip Module and System on Integrated Chips, which allow multiple dies such as CPU, GPU and neural engines to be combined within a single package.
Reports indicate Apple will also adopt SoIC packaging for its M5 Pro and M5 Max chips, while using a new liquid molding compound compatible with TSMC’s CoWoS process. This signals a potential long term shift towards the same advanced packaging infrastructure that NVIDIA already dominates.
According to SemiAnalysis, Apple currently leads TSMC’s InFo capacity, while NVIDIA is strongest in CoWoS. As Apple moves into SoIC and WMCM for its high end chips, both companies are likely to compete for AP6 and AP7 packaging capacity, increasing pressure on TSMC’s already constrained resources.
