Apple Faces Severe Memory Chip Supply Shortages

Supply chain constraints leave $1 billion in unfinished chips at TSMC, causing price hikes and shipping delays for Apple product lines.

Apple and its suppliers are facing severe memory chip shortages, according to analyst Tim Culpan. The supply crunch has left one billion dollars in unfinished chips at TSMC. CEO Tim Cook confirmed significant supply chain constraints during late July.

The shortage impacts the upcoming A20 Pro chip, Apple's first N2 process component. This chip uses Wafer-level Multi-Chip Module packaging to integrate DRAM from Micron, SK Hynix, and Samsung. Consequently, Apple has raised prices across most product lines.

MacBook Air shipping times now span several weeks, and high-memory Mac Studio options were removed. With the iPhone 18 Pro and a foldable model due in September, Ming-Chi Kuo warns foldable production may be limited to under one million units this year.


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