TSMC reportedly holds $1 billion worth of Apple chips in inventory while awaiting DRAM deliveries from suppliers to complete packaging. The foundry is using InFO-PoP (Integrated Fan-Out Package on Package), a 3D wafer-level fan-out technology that places memory directly atop the SoC die, eliminating the need for a separate LPDDR5X module that would otherwise consume over 100 mm² of PCB space.

With fewer than six weeks until the iPhone 18 series and iPhone Ultra launch, Apple is scrambling to secure DRAM orders. The company primarily sources LPDDR5X from Micron, with SK hynix and Samsung as secondary suppliers. Apple reportedly approached CXMT for a volume discount, but the Chinese manufacturer declined.

TSMC cannot finalize processor assembly until DRAM dies arrive, as InFO-PoP requires memory integration within the package. The packaging process takes up to two weeks, leaving TSMC and Apple facing a tight production window ahead of the new iPhone release.