Apple's M4 Chip to Drive TSMC 3nm Revenue

Apple is poised to introduce its new iPad Pro on May 7th, featuring the company's advanced M4 chip for the first time. This launch marks a significant shift across Apple's Mac lineup, with the initial batch of M4-powered Macs expected to launch by the end of the year or early next year. The M4 chip is produced using TSMC's N3E process, aligning with Apple's strategy to upgrade the Mac line's performance and potentially boosting TSMC's operations.

The online event hosted by Apple on May 7th in Taiwan will begin at 10 pm local time. Industry analysts expect the event to reveal not only the new iPad Pro, iPad Air, and Apple Pencil accessories, but also the debut of the M4 chip. The M4 chip is anticipated to enhance the computational capabilities of Apple's first AI-powered tablet.

As major computer and chip manufacturers compete in the AI PC market with offerings such as Qualcomm's Snapdragon X Elite and Intel's Core Ultra, Apple's focus on improving performance in its product line is essential. The strategy to highlight AI capabilities using the M4 chip aligns with industry trends and is seen as a natural progression.

Reports suggest that the M4 chip will extend across the entire Mac product line, with the first M4-powered Mac anticipated later this year. This includes the new iMac, standard and high-end versions of the 14-inch and 16-inch MacBook Pro, and Mac mini. Upcoming models in 2025 include updates to the 13-inch and 15-inch MacBook Air in spring, Mac Studio mid-year, and Mac Pro by year-end.

The M4 chip is set to be available in three variants: entry-level Donan, enhanced Brava, and high-end Hidra. Donan is designed for the entry-level MacBook Pro, MacBook Air, and lower-tier Mac mini, while Brava powers high-end MacBook Pros and Mac minis. Hidra supports the desktop Mac Pro.

Apple's plan to integrate the M4 chip across its Mac lineup is likely to support TSMC's revenue from its 3nm family. The M4 chip continues to utilize TSMC's 3nm process but improves the neural network engine (NPU) to enhance AI capabilities across Apple's product range. The M4 chip uses TSMC's N3E process, which offers advancements over the previous N3B process used in the M3 series.

TSMC continues to optimize its advanced process nodes, with the 3nm family including N3E, N3P, and N3X variants. N3E, which entered mass production in Q4 last year, is expected to debut with the new iPad Pro. Given the rising demand for AI and efficient processing, TSMC's revenue share from the 3nm family is expected to increase.