iPhone 18 may be delayed as $1B worth of A20 Pro chips wait for DRAM supply

Apple could postpone the launch of the iPhone 18 due to memory supply issues. Industry sources report that roughly $1 billion worth of finished A20 Pro processors are sitting at TSMC's facilities, unable to move to the next production stage without sufficient DRAM inventory.

The bottleneck comes amid surging demand for memory from AI-focused customers. They are aggressively ordering LPDDR chips, creating a market shortage that prevents Apple from completing its new SoCs. The Cupertino company has tried various approaches to resolve the issue: negotiations with existing suppliers and even an attempt to partner with Chinese manufacturer CXMT for cheaper procurement. None of these efforts have succeeded.

Apple now appears left with little choice but to accept higher prices so that TSMC can proceed with the A20 Pro batch. This could shift the timeline for mass production, which typically begins in July or August. That schedule previously allowed the company to prepare for pre-orders right after its September keynote.

TSMC itself continues to expand capacity. Reports indicate the Taiwanese giant plans to reach 100,000 wafers per month on its 2nm process by the end of 2026. Production runs across several fabs, with the new Wafer-Level Multi-Chip Module (WMCM) packaging deployed at Fab 3 in Longtan. Despite being overwhelmed with orders, the company has so far kept pace with customer requirements, including Apple's, but the current memory crunch marks its first major obstacle.