Is Apple speaking with another chip manufacturing partner?
Apple is in talks with Japanese chipmaker, Rapidus, which may potentially become another chip manufacturing partner for the company alongside TSMC, a report suggests.
To be fair, there’s a little speculative lifting in play here. The claims originate from Rapidus President, Atsuyoshi Koike, and he says the company is also speaking with Google and many others.
Careless talk costs trades
Not only that, but these talks don’t see chips rolling of Rapidus production lines until 2027. Though the discussions may yet form some kind of lifeline given continued unravelling in the wake of Trump’s tariffs. They do at least potentially give Apple an alternative place to be taxed from.
Rapidus is a serious contender, however. Backed to the hilt by the Japanese government (which has invested over $11 billion so far), the company has formed a prototype chip production line that is expected to begin production this month with good to go chips rolling out by mid-summer, according to Nikkei.
The company intends mass-production of 2nm chips, which is where we know Apple is going with its own Apple Silicon processors.
Automatic for the (no) people
It is also interesting that the production line is heavily automated. It’s packaging capability, for example, is fully automated, which means it may possibly be able to churn out chips more swiftly than some competitors. But we will still need to wait to see the extent to which this works out in terms of semiconductor production.
Will Apple bite?
I don’t expect so, at least, not in the short term.
Despite the allure of shifting to Japanese manufacturing to avoid the most stinging import taxes, the company will still want to be certain Rapidus can manufacture consistently to high quality standards.
With that in mind, I anticipate a wait and see approach.
Broadcom for first bite?
Reports earlier this month suggested Broadcom may become a customer, and if that is what happens then I guess Apple may follow, once it sees production is viable there. That’s, I guess, assuming China and Canada permit export of the rare earths used in semiconductor manufacturing by then.
NB: Rapidus really didn’t want that Broadcom coverage. In a statement released soon after it emerged, it said:
“Although there has been recent media coverage regarding Rapidus and Broadcom Inc., these articles are speculation, and did not originate from our company. There are no details to be disclosed at this stage in relation to our business with Broadcom.”
Interesting.
One to watch?
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