$1 billion in TSMC chips for Apple's new iPhone 18 are reportedly sitting on shelves, waiting for DRAM

Q: What is InFO-PoP packaging and why does it require DRAM before TSMC can ship the A20 chips to Apple?

InFO-PoP is Integrated Fan-Out Package on Package technology that stacks the DRAM memory directly above the main SoC, eliminating a separate LPDDR5X module and saving physical space. Because the memory must be physically integrated into the processor package at TSMC, TSMC cannot complete packaging or ship the A20 chips to Apple until the required DRAM is delivered and installed, a process that the article says takes about two weeks to finish.

Q: Which DRAM suppliers does Apple normally rely on for LPDDR5X and are they mentioned in this article?

Apple normally looks to Micron as its main supplier of LPDDR5X memory, while also tapping SK hynix and Samsung. All three suppliers are explicitly mentioned in this article.

Q: How does integrating DRAM above the SoC with InFO-PoP change the physical footprint compared to separate LPDDR5X modules?

Integrating DRAM above the SoC with InFO-PoP stores the memory directly on top of the main processor, eliminating the need for a separate LPDDR5X module. The result is a smaller physical footprint compared to using separate LPDDR5X modules.

Q: What does the article say about the $1 billion in TSMC inventory and why it’s considered ‘excess’?

The article says TSMC is reportedly holding on to over $1 billion of "excess inventory" because the wafers/chips cannot be fully packaged and shipped without the DRAM that must be integrated using InFO-PoP technology. InFO-PoP requires the DRAM to be stacked above the SoC before processors can leave TSMC, so the inventory is considered excess while it waits for the missing DRAM and Apple scrambles to secure it.

Apple is reportedly scrambling to secure memory for its iPhone 18 launch, with TSMC sitting on $1 billion+ of 'excess inventory' awaiting DRAM.

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Kosta Andreadis

Senior Editor

Published Aug 7, 2026 12:04 AM CDT

1 minute & 15 seconds read time

TL;DR: Apple is urgently seeking DRAM for iPhone 18 launches after a CXMT deal collapsed, leaving TSMC holding over $1 billion of finished A20 chips awaiting DRAM for InFO‑PoP packaging. With about six weeks to launch and two weeks needed for packaging, Apple must secure LPDDR5X supply quickly.

Voice: Kosta AndreadisSpeed

0:00 / 2:35

Earlier today we reported on a deal that fell through between Chinese memory manufacturer CXMT and Apple, where the latter was attempting to secure cheaper pricing for DDR5 memory that it needs for its next-gen iPhone 18 products powered by the 2nm A20 chip.

$1 billion in TSMC chips for Apple's new iPhone 18 are reportedly sitting on shelves, waiting for DRAM 1

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According to journalist and insider Tim Culpan, the situation is getting dire, with Apple "scrambling" to secure memory for its big iPhone 18 and foldable iPhone Ultra launch that's weeks away. The reporter calls the situation "fascinating" because TSMC is reportedly holding on to over $1 billion of "excess inventory" because it's still waiting on DRAM to complete packaging.

Apple's next-gen 2nm-powered iPhones will reportedly feature chips with Integrated Fan-Out Package on Package (InFO-PoP) technology that stores memory directly above the main SoC. The result is a smaller physical footprint as there's no need for a separate LPDDR5X module.

Read more: Chinese CXMT rejects Apple, leaving the company scrambling for DRAM
Read more: Apple A20 chip to skip TSMC's WMCM tech amid DRAM shortages
Read more: Apple's next-gen iPhone 18 has new A20 Pro and A20 processors, codenames revealed for 2nm SoC

With the launch of the iPhone 18 reportedly six weeks away, and TSMC requiring about two weeks to complete the full processor packaging, the pressure is on Apple to secure the DRAM it needs as soon as possible. Normally, the company looks to Micron as its main supplier of LPDDR5X memory, while also tapping into SK hynix and Samsung. It's unclear what happened to the memory it expected to have ready in time for packaging at TSMC, but it's safe to assume that Apple hasn't simply "woken up" and realized that it forgot to order DRAM this close to a potential launch.

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Question #1

What is InFO-PoP packaging and why does it require DRAM before TSMC can ship the A20 chips to Apple?

Question #2

Which DRAM suppliers does Apple normally rely on for LPDDR5X and are they mentioned in this article?

Question #3

How does integrating DRAM above the SoC with InFO-PoP change the physical footprint compared to separate LPDDR5X modules?

Question #4

What does the article say about the $1 billion in TSMC inventory and why it’s considered ‘excess’?

Have a question about this content not listed here? Ask below and TweakBot will answer it.

Although this is a specific case, as InFO-PoP requires DRAM to be integrated into the package before a processor can be shipped from TSMC to Apple's iPhone production line, it's something we haven't seen before. Before the AI-born memory crisis, Apple essentially had its pick of technology, with manufacturers lined up to deliver the latest and greatest for its various devices. But now, in 2026, Apple is struggling to obtain the DRAM it needs to launch its new iPhone.