At WWDC last month, Apple finally announced its AI plans, which are expected to be the powerhouse of upcoming software updates including iOS 18, macOS 15 Sequoia, and so on.
That’s why Apple is gearing up to use more advanced and powerful chips, such as the M5 with SoIC (System on Integrated Chip) packaging to boost performance for both Macs and cloud-based AI servers. And once again, Apple will partner with Taiwan-based TSMC to meet its requirements, according to a report from Economic Daily.
As analyst Jeff Pu suggests Apple’s timeline may see AI servers equipped with the M4 chip by late 2025, potentially superseding current M2 Ultra chips used in AI cloud servers and originally designed for Mac devices. Meanwhile, hints about Apple’s upcoming M5 chip have already surfaced in official code, corroborating reports that work is ongoing, besides TSMC’s 3nm process.
Apple’s AI cloud servers currently use several linked M2 Ultra chips, which were initially meant only for desktop Macs. When Apple switches to the M5 with SoIC, its advanced dual-purpose design suggests Apple is preparing for the future by integrating its supply chain to support AI across computers, cloud servers, and software.
TSMC introduced SoIC in 2018, letting chips stack up in 3D. This setup handles electricity and heat better than traditional flat designs. Apple and TSMC are teaming up to develop an even more advanced version of SoIC. Currently, it’s in testing, but the companies plan to start mass production of M5 for new Macs and AI servers by the second half of 2025.