TSMC Set to Benefit Significantly from Apple’s In-House C1 5G Modem, With Plans to Expand Chip Use to iPad and Apple Watch by 2026

Apple’s recent launch of the iPhone 16e has put a spotlight on the company’s new C1 5G modem, a groundbreaking achievement as it marks Apple’s first in-house baseband chip. This development is pivotal for the tech giant, significantly reducing its reliance on Qualcomm. The implications for Apple are profound, as this unique modem is expected to feature in a variety of future products. Furthermore, TSMC, Apple’s manufacturing partner, stands to gain considerably, given that the C1 modem will set the stage for more in-house solutions manufactured using cutting-edge lithography techniques.

What’s Next for Apple’s In-House 5G Modems?

Anticipation grows as the second-generation 5G modem, codenamed ‘Ganymede, ’ is expected to enter mass production utilizing TSMC’s advanced 3nm process. Current insights suggest that the C2, which is still under testing, may represent Apple’s significant leap in modem technology.

While specific pricing details for the C1 modem remain undisclosed by China Times, projections indicate that the iPhone 16e could see shipments of approximately 22 million units in 2025. This forecast suggests substantial financial contributions to TSMC’s annual revenue. The manufacturing of the C1 modem, along with its transceiver on TSMC’s 4nm and 7nm nodes, grants the iPhone 16e remarkable battery efficiency, outperforming all previous models featuring a 6.1-inch display.

According to the latest reports, the introduction of the C1 is merely the start of a new era for Apple. The custom 5G modem will likely extend to the Apple Watch and iPad lineup by 2026, although precise models remain unconfirmed. Meanwhile, Apple is diligently progressing with the development and testing of the C2 modem, indicating a robust effort to integrate their in-house technology across a diverse range of devices.

Looking ahead, the tech community speculates that Apple will introduce yet another variant, possibly named ‘Prometheus’ or C3. This suggests that the company might be evaluating three distinct versions of its proprietary 5G modems, each engineered for specific device requirements. Furthermore, the anticipated C2 is expected to incorporate mmWave support, leveling the playing field against Qualcomm’s offerings. Currently, the C1 modem lacks this capability; however, its successor could eliminate cost barriers related to mmWave implementation.

In summary, the evolving landscape appears favorable for TSMC, while Qualcomm may face challenges with Apple’s audacious push into in-house technology. This strategic move not only showcases Apple’s commitment to innovation but could also reshape the competitive dynamics within the telecommunications sector.

News Source: China Times

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