Apple faces production problems with the upcoming iPhone 18 series because of an ongoing memory supply shortage, according to reports. The company is holding about $1 billion worth of processors for packaging and is conducting intense talks with memory makers to secure sufficient DRAM supply.
Tim Culpan of Culpium reported that Apple is racing against time on memory supply as the iPhone 18 family launch approaches. The company is trying to obtain memory in time to complete packaging for the A20 Pro and C2 processors intended for the new series.
The issue extends beyond DRAM production capacity. Apple also requires advanced packaging capacity to combine processor and memory components, which makes the company more vulnerable to the supply crisis. TSMC is reportedly holding about $1 billion worth of processor wafers manufactured for Apple while waiting to package them with DRAM.
Processor Technology and Packaging
The A20 Pro processor is expected to be the first Apple chip built on the 2 nm (N2) manufacturing process from TSMC. The chip packaging uses TSMC new Wafer-Level Multi-Chip Module technology for mobile devices. This technology operates similarly to the CoWoS packaging technology TSMC uses for high-performance processors.
Apple relies mainly on Micron for DRAM supply, alongside smaller contracts with SK Hynix and Samsung. Supply shortages in the memory sector limit options for Apple. Major producers including Micron have allocated significant portions of DRAM and High Bandwidth Memory capacity through long-term contracts through 2027. This situation creates added pressure for high-volume manufacturers like Apple.
Alternative Suppliers and Regulatory Issues
Apple is turning to alternative suppliers to meet growing DRAM needs, including China-based memory maker CXMT. However, supply from CXMT remains uncertain because the United States government is evaluating potential restrictions on the firm. Apple has reportedly made efforts with the U.S. administration to obtain access to products from CXMT.
Apple and its manufacturing partners remain confident they can meet initial demand for the iPhone 18 series. However, memory shortages could affect shipments after the initial launch period.
Apple aims to ship about 200 million units across all iPhone 18 models over the product lifespan. That target is below the previous generation, as the iPhone 17 family reached more than 245 million units shipped throughout 2025.
