Apple will launch four iPhone 12 series smartphones in the second half of 2020. In addition to the A14 Bionic processor with more powerful computing performance, it will also be equipped with a Qualcomm Snapdragon X55 modem and only support Sub-6GHz depending on the 5G network of each country, or Synchronous support for Sub-6GHz and mmWave (millimeter wave). The supply chain industry pointed out that Apple A14 uses a 5-nanometer process, and Qualcomm X55 uses a 7-nanometer process. Wafer foundry orders are taken by TSMC. Among them, Apple A14 will begin mass production at the end of the second quarter and cover one-third of TSMC. 5nm production capacity.
TSMC's capital expenditure in 2019 and 2020 will increase to US $ 14-15 billion, which is used to increase 7-nanometer production capacity and accelerate 5-nanometer production capacity. Apple's iPhone 11 series launched in 2019 had better-than-expected sales. In addition, in the first half of 2020, a low-cost iPhone SE 2 will be launched with the same A13 processor. Apple's demand for TSMC's 7nm wafer foundry remains high.
As countries will open 5G telecommunications networks in 2020, Apple's iPhone 12 launched in 2020 will support 5G. Supply chain news shows that Apple is expected to launch four iPhone 12s, including iPhone 12 with 5.4-inch and 6.1-inch OLED panels, iPhone 12 Pro with 6.1-inch OLED panel, and iPhone Pro Max with 6.7-inch OLED panel. Among them, iPhone 12 Pro / Pro Max will be equipped with 3 lenses and support time-of-flight (ToF).
All Apple iPhone 12 series are equipped with A14 application processors and will be mass-produced using TSMC's 5nm process. TSMC 5nm has entered the trial production stage and will enter mass production in the first half of 2020. Apple and Huawei Hisilicon are the first two major customers. Apple is optimistic that the iPhone 12 supporting 5G will drive strong replacement demand for iPhone 7/8 and other old machine users. The market is optimistic that shipments will see more than 100 million units. Equipment manufacturers estimate that Apple has already contracted two-thirds of TSMC. 5nm production capacity, mass production will begin at the end of the second quarter of 2020.
Apple reached a settlement with Qualcomm and bought the Intel smartphone 5G chip business, but the iPhone 12 series will be fully equipped with Qualcomm 5G modem X55. Qualcomm X55 is currently the only 5G modem chip that supports Sub-6GHz and mmWave simultaneously. Apple will support only Sub-6GHz single band or dual band at the same time through firmware adjustment. Because Qualcomm X55 uses TSMC's 7nm mass production, driven by Apple's strong demand, Qualcomm has aggressively booked 7nm production capacity in 2020, which is one of the key reasons for TSMC's 7nm capacity utilization to remain fully loaded in the first half of the year.
TSMC's consolidated revenue in November increased by 1.7% month-on-month to RMB 10,878.84 billion, which was a record monthly revenue, which was a year-on-year increase of 9.7%, and the consolidated revenue for the previous 11 months reached 966.6672 billion yuan, a year-on-year increase of 2.7%. The legal person estimates that TSMC's fourth-quarter and full-year revenue will reach record highs. In the first quarter of 2020, revenue will only decline slightly by 5% due to the decrease in working days. After the second quarter, it will hit a quarter-to-quarter high. In the first half of the year, 2020, revenue and profit will continue to reach record highs.