Ming-Chi Kuo has pushed back on reports that TSMC is holding roughly $1 billion of Apple’s 2nm A20 Pro chips, stranded by the DRAM shortage. The supply-chain analyst agrees the memory crunch is real. The billion-dollar stockpile, he says, does not add up.
The claim originated with independent tech journalist Tim Culpan, who read TSMC’s second-quarter results as evidence that Apple’s newest processor wafers were piling up at the fab. Inventory days rose to 87 in Q2, from 80 in Q1 and 76 a year earlier, just as 2nm output began showing up in revenue. Culpan’s argument, reported by TechRadar, is that the wafers cannot become finished chips without the DRAM that packaging stacks on top of them, and DRAM is scarce.
Why the $1 billion hoard does not add up
Kuo’s rebuttal, posted on X and covered by Wccftech, runs on three points. Inventory days have climbed at the start of every node ramp — the same happened with 3nm and 5nm. TSMC’s inventory figure is broad, covering work-in-progress, finished goods, raw materials and spare parts, so a bump cannot be pinned to Apple wafers alone. And Apple is not 2nm’s only customer: AMD, MediaTek and Qualcomm are ramping on the same node, and their stock sits in the same number.
He adds that Apple plans TSMC production at least three months out, matched to expected memory supply. There would be little point paying the foundry to build chips it cannot finish, and two companies with this record would not end up with a billion dollars of half-finished silicon through passive overstocking.
What it means for the iPhone 18 Pro
The A20 Pro is expected to power this year’s iPhone 18 Pro, one of eight products tipped for Apple’s September event. Apple has already confirmed the underlying pressure is real: CFO Kevan Parekh warned that supply constraints will “significantly intensify” in the fiscal fourth quarter, affecting iPhone, Mac and iPad, and Tim Cook blamed demand that ran ahead of forecast at the advanced nodes. Apple is also reported to be testing memory from Chinese maker CXMT for some China-market devices. Kuo is not disputing the shortage — only the picture of a passive, billion-dollar backlog.
Apple has already begun spreading its chip-making around, with WSJ-reported plans to add Intel as a second foundry partner from the iPhone 19 generation. The A20 Pro, though, remains a TSMC-only job.
What it means if you’re shopping in the UAE
If Apple keeps its usual September schedule, the iPhone 18 Pro should arrive in the UAE in the same window as everywhere else — and early supply may be tight. Cook has already called price increases unavoidable amid the memory chip shortage, so launch pricing may carry some of that weight too.
What is the Apple A20 Pro chip?
Apple’s first 2nm processor, built by TSMC. It is expected to power the iPhone 18 Pro range, which Apple has not yet announced.
Did Ming-Chi Kuo say the DRAM shortage is fake?
No. Kuo says the memory crunch is real and has forced Apple to trim some hardware shipment plans. He only disputes the claim that TSMC is holding $1 billion of stranded Apple wafers.
When will the iPhone 18 Pro launch?
Apple has not confirmed a date. If it keeps its usual pattern, the iPhone 18 Pro is expected in September 2026, powered by the A20 Pro.
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