Apple's A20 Pro, believed to be its next-generation mobile chip, is reportedly stuck at TSMC after failing to enter final packaging due to a DRAM shortage.

TechRadar reported on Aug. 10 that about $1 billion worth of finished Apple silicon wafers at TSMC is waiting and unable to move to the next process.

The key issue is not production yield but memory supply. Taiwan Taipei-based semiconductor analyst Tim Culpan (팀 컬펀) said A20 Pro production on TSMC's N2 process is proceeding with "good volume and yields". The problem is that the chip cannot move to the shipment stage because the DRAM needed for packaging has not arrived.

The delay is drawing attention because Apple has changed the chip packaging structure. For more than 10 years, Apple has used InFO, an integrated fan-out method, for iPhone processors. Under this approach, the logic die containing the CPU, GPU and neural engine is made first, and memory is added at the assembly stage. Even if memory is short, the logic chips can continue to be produced and stockpiled.

The A20 Pro is instead said to use TSMC's WMCM process. WMCM expands CoWoS-type packaging for mobile use, integrating the processor and DRAM side by side at the wafer stage. He said that under this structure, "TSMC must secure memory in advance to complete the package and cannot add it later." That means the previous approach of producing and stockpiling chips first does not work.

Memory also underpins Apple's choice of this structure. Placing the processor and memory closer together at the wafer stage allows more DRAM to be installed and reduces latency, which is advantageous for on-device AI features. This time, demand for AI memory has instead become a constraint. The memory is LPDDR5X, and supply for smartphones has tightened as expanding data center-led AI infrastructure has absorbed production capacity.

The likelihood of a launch delay itself is not yet high. He said Apple and assemblers are showing confidence in meeting initial demand and can process launch-day orders without delay. He added that the result of the supply delay could be "thinner supply." That means general retail inventory could shrink quickly even if initial sales volumes are met.

The burden after launch could grow in the assembly stage. Foxconn and BYD Electronics mainly handle main logic board assembly and final assembly, and their production schedules could come under pressure if delivery of packaged processors is delayed. Even if memory is secured, the schedule for back-end processes could become shorter.

In the market, more weight is placed on the risk of a shortage of initial supply than on a cancelled launch. The expected scenario includes offline stock shortages, early sell-outs of pre-orders and delivery delays on a weekly basis. Apple is said to plan to ship about 200,000,000 units over the entire lifecycle of its next iPhone lineup, and there is little room to absorb supply disruptions given that iPhone 17 series shipments in 2025 exceeded 245,000,000 units.

A solution to source memory is also not yet clear. Apple's LPDDR5X supply chain is reportedly centered on Micron, including SK Hynix and Samsung Electronics. Contacts with China's ChangXin Memory Technologies (CXMT) were also reviewed to secure price competitiveness, but did not lead to a contract. Renegotiations with existing suppliers are also said to have produced no results yet, leaving Apple in a situation where it must secure volumes at current market prices.

The key point to watch is not simply chip output but when memory is secured and whether packaging returns to normal. A20 Pro production itself is running smoothly, but as Apple has chosen the new packaging structure, the pace of commercialising the next iPhone is increasingly likely to hinge on memory supply unless the LPDDR5X bottleneck is resolved.