$1 billion of iPhone 18 Pro processor wafers await packaging as DRAM shortages block completion.

Apple has approximately $1 billion in processor wafers awaiting packaging due to ongoing DRAM shortages, according to analyst Tim Culpan of Culpium. The memory supply constraints are putting pressure on the company ahead of the iPhone 18 launch, with Apple reportedly scrambling to source sufficient memory supply to complete packaging of the A20 Pro and C2 chips destined for the new lineup.

The situation highlights vulnerabilities in Apple's supply chain that extend beyond simple DRAM chip availability. With fully-integrated systems-on-chip for both desktop and mobile products, Apple faces dual constraints: securing adequate DRAM supply and accessing sufficient packaging capacity to integrate DRAM chips with processor wafers.

Apple primarily sources DRAM from Micron, with smaller volumes from SK Hynix and Samsung. The major memory suppliers have reportedly sold their DRAM and HBM capacity through 2027 via long-term agreements, guaranteeing supply to select customers for multiple years.

The A20 Pro represents the first chip using TSMC's N2 process, which has progressed well in production. The $1 billion in TSMC wafers awaiting packaging reflects the shift to TSMC's Wafer-Level Multi-Chip Module (WMCM) process for mobile packaging—a method similar to existing CoWoS packaging but adapted for smartphones.

Despite these constraints, Apple and its manufacturing partners remain confident they can meet initial demand for the device. However, DRAM shortages could impact shipments beyond the launch window. Apple expects to ship approximately 200 million iPhone 18 units across the lineup over its product lifespan, compared to record iPhone 17 shipments of 245 million devices in 2025.

To address supply pressures, Apple is exploring alternative DRAM suppliers, particularly China's CXMT. The company has reportedly been lobbying the U.S. government for clearance to source from CXMT while officials weigh whether to restrict access to the Chinese memory manufacturer.