According to a report from Culpium, cited by Wccftech, TSMC is currently holding around $1 billion worth of Apple's A20 Pro chip units that cannot move to the next production step due to insufficient DRAM supply. The A20 Pro is expected to power upcoming iPhone models, and Apple's newest SoCs typically enter mass production in July or August to prepare for pre-orders following the company's September keynote.
TechPowerUp, also citing Tim Culpan's Culpium newsletter, reports that Apple is scrambling to secure DRAM with less than six weeks remaining before the launch of the iPhone 18 series and iPhone Ultra. Assemblers are reportedly rushing to place DRAM orders to secure supply in time for the launch.
Apple primarily relies on DRAM from Micron, whose LPDDR5X memory is used across a range of devices and is the main memory source for the next-generation iPhone, according to TechPowerUp. SK hynix and Samsung are also listed as suppliers, though Micron remains the primary choice.
Both sources report that Apple attempted to negotiate with Chinese memory manufacturer CXMT to secure LPDDR5X supply at a lower price. TechPowerUp states that CXMT rejected Apple's proposed discount, marking what the report describes as one of the first instances where negotiating power lies with the supplier rather than Apple. According to TechPowerUp, CXMT's output is largely reserved for Chinese customers, including hyperscalers, neo clouds, and AI labs, who are willing to pay current market rates without seeking discounts.
Wccftech reports that Apple's attempts to negotiate better pricing with current suppliers and with CXMT have been unsuccessful, leaving the company with little choice but to pay a premium to allow TSMC to proceed with A20 Pro shipments. It remains unclear, per TechPowerUp, whether Apple has ultimately accepted standard market pricing from CXMT.
The DRAM shortage is described by Wccftech as having caused a chain reaction across Apple's supply chain, with final iPhone production based in China. The report also states that the shortage has delayed MacBook Air shipments, with units not expected to be available to buyers until September, and that there is a possibility the iPhone 18 Pro and iPhone 18 Pro Max could face delays as a result.