Apple processors shine like never before. And not only those of the iPhone 16, but also the new M4 chips, which have become essential.The processors with the fastest cores in the world. Did you know that most of these chips are made on a small island in the Pacific?
Taiwan covers only 36,000 square kilometers and has become the world’s center for processor manufacturing. Something very advantageous on the one hand, since It is the epicenter of innovationbut also certainly dangerous due to conflicts with China. In fact, Apple started manufacturing its A16 chips in the United States to have a plan B in case something happens that no one wants.
Apple Intelligence needs a new home in Taiwan
Decades ago, Taiwan made a wise decision: to go all-in on the semiconductor industry. This strategy paid off, making the island the headquarters of TSMC– The world’s most advanced chip manufacturer and the main supplier to Apple. And the world of processors has become more essential than ever, not only because they are in our iPhones or Macs, but also because of the great challenge of artificial intelligence, which requires gigantic servers to process all the data.
Apple Intelligence takes a more private approach to AI. Unlike ChatGPT or Gemini, Apple handles most requests on the iPhone itselfiPad or Mac However, some tasks such as creating images or large queries require a server. This is where the Private cloud computinga private server specially designed with Apple processors.
After the launch of Apple Intelligence with iOS 18.1 in English, and the arrival in Spanish next April, AApple must increase its capacity to receive millions of users. That’s why, from Cupertino, they want to make more of their servers. Private cloud computing using the new M4 chips, which should replace the current M2 Ultra that they are currently using.
Apple knocks on Foxconn’s door: ‘Sorry, we’re full of work’
Apple started talking with Foxconn, the main manufacturer of iPhone and cornerstone of Apple. They trust them to manufacture the most efficient devices. In fact, for Tim Cook, that’s why they manufacture in China, not because of costs.
However, Foxconn is a Taiwanese companybut it has the largest number of factories in China. And here is the first of the conflicts: the chips would be manufactured by TSMC in Taiwan and they would like to keep the server there. Those responsible for setting up the server would be Foxconn, a Taiwanese company, but very present in China.
The second problem is that Foxconn already offers a similar service for Nvidia and is currently saturated with the construction of server centers for this company. Therefore, Apple could easily make thousands of M4 chips, but it wouldn’t have a company to assemble them into a server.
According to anonymous sources from Nikkei Asia, Foxconn is currently concerned about building server centers for Nvidia. Apple’s entry could strain the already limited resources available at Foxconn.
This situation led to Apple will explore other optionsincluding possible partnerships with China’s Lenovo Group and smaller suppliers such as Universal Scientific Industrial.
A game of geopolitical chess and a test for Taiwan’s power
The situation is further complicated by geopolitical tensions between China and Taiwan. The threat of a possible Chinese invasion led TSMC to implement drastic security measures, including a mysterious panic button that could deactivate all of its machines in the event of a conflict.
Apple’s decision to develop its own servers with M4 chips for Apple Intelligence and the search for new partners like Foxconn is going to be a high-precision game. Time is running out for Taiwan and also for Foxconn. The island that bet everything on tokens now faces a future where virtually all resources will be saturated by AI.
The current panorama raises more questions than answers. ¿Taiwan will be able to maintain its domination in the processing industry? It’s no longer enough to make them and insert them into an iPhone. Servers are now needed on a larger scale with all the economic, human and time costs that this entails.
Source | Nikkei Asia
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