Apple’s C1 Modem & Transceiver Utilize TSMC’s Older Technology to Reduce Costs: Analyst Discusses Why Qualcomm and Others Adopt Similar Strategies

TSMC is significantly investing billions into its manufacturing capabilities to meet the rising demand from top-tier clients, including Apple and Qualcomm. These companies depend on TSMC for timely delivery of their innovative chipsets as they compete fiercely in the technology landscape. However, a notable inconsistency arises in the realm of modem technology. Unlike their other chipsets, 5G baseband chips, such as the C1 and Snapdragon X75, still make use of TSMC’s older 4nm fabrication processes. An analyst sheds light on the reasoning behind this reliance on older production technologies, revealing that it extends beyond mere cost concerns.

Analyst Insights on 5G Modem Development

According to industry analyst Ming-Chi Kuo, one key factor for companies like Apple and Qualcomm delaying the launch of their 3nm models of 5G modems is the desire to manage costs effectively. To illustrate, the tape-out expenses for Apple’s latest M3 series chips, produced using TSMC’s initial 3nm process named ‘N3B’, totaled around $1 billion. Such high costs highlight the financial burden associated with designing and testing modems on newer lithography technologies. Yet, Kuo emphasizes that financial implications are not the sole reason for sticking with older processes.

Kuo explains that the potential return on investment for state-of-the-art modem development is relatively low. Transitioning to TSMC’s 3nm technology does not inherently guarantee improved transmission speeds for these baseband chips, as achieving greater efficiency involves a complex interplay of various engineering principles. Furthermore, while newer production processes might enhance energy efficiency for the C1’s successor, it’s important to note that modems themselves are not the primary consumers of battery power. In many instances, the display and system-on-chip (SoC) components command a greater share of energy consumption, thereby justifying the need for advanced technologies in those areas instead.

Interestingly, Qualcomm’s Snapdragon X75 and X71 also utilize TSMC’s 4nm process, yet Apple promotes its in-house C1 modem as providing superior efficiency. This discrepancy may stem from the fact that the C1 lacks mmWave support, which means that the higher transmission capabilities of the Snapdragon X75 and X71 might lead to greater power demands. Additionally, the recent iPhone 16e has sufficient internal space for a larger 4, 005mAh battery—surpassing the 3, 582mAh battery of the more premium iPhone 16 Pro—resulting in extended battery life.

In a recent development, Qualcomm unveiled its Snapdragon X85 5G modem, although specific details regarding the fabrication process are currently under wraps. Given Kuo’s insights, it would not be surprising if this latest flagship modem also relies on the 4nm node for production.

Source & Images