Market rumors claiming that TSMC is holding a US$1 billion stockpile of Apple chips due to a shortage of memory components have been questioned by prominent Apple analyst Ming-Chi Kuo.
The global memory supply crisis has created challenges across the technology supply chain, affecting both component availability and pricing. However, Kuo believes claims that TSMC has accumulated a massive inventory of unfinished Apple processors may not accurately reflect the situation.
In a post dated August 10, TF Securities analyst Ming-Chi Kuo addressed reports that TSMC had built up a stockpile of Apple’s 2nm chips, reportedly worth around US$1 billion. The alleged inventory consists of processor wafers intended for semi-finished products that have yet to complete the packaging process.
According to the market rumor, the issue stems from a shortage of DRAM memory. Apple’s processors require memory to be integrated during the packaging process, and insufficient memory supplies could potentially leave manufactured chips waiting before they can be completed.
The rumor appears to have been partly linked to comments made during TSMC’s Q2 2026 earnings call, where the company reported increased inventory days as it ramped up production of its advanced 2nm process technology.
However, Kuo has questioned whether this explanation makes sense given the close supply-chain relationship between Apple and TSMC. He argues that the two companies engage in extensive production planning, making it unlikely that TSMC would manufacture a massive quantity of processors without considering the availability of the memory components required to complete them.
Kuo did acknowledge that his industry research indicates Apple’s hardware shipment forecasts for 2026 have been reduced due to memory shortages, suggesting that the supply problem itself is genuine.
The key issue with the US$1 billion stockpile claim is the way Apple’s processor orders are planned. According to Kuo, Apple typically places processor orders with TSMC around three months in advance, with production volumes determined in coordination with available memory supplies.
This planning process makes it unlikely that TSMC would unexpectedly find itself holding a huge quantity of Apple processors that cannot be packaged because of insufficient memory.
While memory shortages are clearly putting pressure on Apple and other technology companies, Kuo’s assessment suggests that the reported US$1 billion TSMC chip stockpile should be treated as a market rumor rather than a confirmed supply-chain crisis involving Apple’s processors.