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Apple Accelerates Apple Car Chip Talks, Hits the Same Roadblocks as Every Carmaker

Apple Car rendering 10 photos
Photo: Vanarama
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The development of the Apple Car is making good progress, according to people familiar with the matter, so the Cupertino-based tech giant has now moved to the phase where it’s trying to secure a chip deal for its upcoming vehicle.
But the ongoing talks aren’t as easy as Apple hoped they would be.

A recent report reveals that Apple is currently discussing a deal with a mysterious Korean substrate manufacturer, though it’s not clear if the talks are related in any way to previous negotiations the company held with local companies.

This time, it’s being reported that Apple wants to secure a collaboration for FC-BGA substrates that would be used for the production of chips aimed at the Apple Car.

But on the other hand, Apple seems to be hitting the same roadblocks as all the other carmakers out there, all because of the current chip crisis happening across the world.

Most large ABF-based substrate suppliers, no matter where they are based, are already running at full capacity, which means that working together with Apple isn’t exactly easy. The Cupertino-based tech giant typically has high requirements from suppliers and seeks exclusivity, but in this case, it’s pretty clear Apple would have a hard time finding someone that can add extra capacity for its project.

If anything, Apple could eventually turn to Unimicron for a substrate collaboration, as the Taiwanese company is the supplier of parts for the M1 chip. Also known as the first-generation Apple Silicon, M1 is a custom ARM-based chip installed on a series of Apple devices, including MacBooks.

Apple has so far remained completely tight-lipped on everything related to the manufacturing of the Apple Car, but people with knowledge of the matter previously said the vehicle could see the daylight in 2025, at the earliest. It’s not known if the same ETA is still on the table, but it’s pretty clear the chip crisis and the material shortage are creating new challenges for Apple in this unexplored side of the market.
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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