OpenAI Teams Up with Apple as Lead Customer for TSMC’s A16 Process

Apple has secured the initial round of production for the A16 process, while OpenAI has also made reservations for production, according to a recent report. The A16 process is considered the most advanced manufacturing process outlined on TSMC's roadmap and is anticipated to commence production in the latter half of 2026.

Although Apple's involvement as a primary customer was expected, OpenAI, a company primarily focused on software until now, has also entered the realm of chip manufacturing. Earlier this year, reports surfaced indicating that OpenAI's CEO, Sam Altman, expressed a keen interest in venturing into chip production.

OpenAI had been in discussions with TSMC to establish a dedicated wafer fab to cater to its requirements, as per the Economic Daily News, citing industry sources who chose to remain anonymous. However, the plan for a dedicated fab has reportedly been put on hold. Instead, OpenAI is exploring collaborations with Broadcom and Marvell to develop its own ASIC chips.

The chips created by Broadcom and Marvell for OpenAI are slated to undergo production initially using TSMC's 3nm manufacturing process before transitioning to the A16 process.

There are indications of a close partnership between Apple and OpenAI. Apple unveiled its personal intelligence system, Apple Intelligence, in June 2024, which is believed to incorporate ChatGPT. This system aims to enhance the functionality of Apple devices such as the iPhone, iPad, and Mac computers by integrating generative AI models with personal context, focusing on areas like writing and image creation.

Rumors suggest that Apple is in talks for an investment that could potentially value OpenAI at a staggering US$100 billion.

The A16 manufacturing process is set to be nanosheet-based and will feature TSMC's innovative backside power delivery system known as Super Power Rail (SPR). This system enhances logic density and performance by allocating front-side routing resources to signals, while the power on the backside reduces IR drop, as claimed by TSMC.

Compared to the N2P process, the A16 process is expected to offer an 8 to 10 percent performance boost at the same Vdd, a 15 to 20 percent reduction in power consumption at the same performance level, and a 7 to 10 percent increase in chip density.

These recent developments mark an exciting phase in the technological advancements within the chip manufacturing industry, with both Apple and OpenAI making significant strides towards innovation and collaboration.