Apple has gained a clear advantage in chip manufacturing. According to new reports, the company is securing nearly half of TSMC's global 2nm production. This move affects not only future iPhone generations but also competition in the semiconductor industry.
The development of new chip generations is progressing rapidly. While TSMC's 3nm and 4nm processes are fully booked until 2026, the Taiwanese chipmaker is already preparing for the introduction of the 2nm node. Apple is considered its most important customer. The company plans to use the 2nm process in its A20 chips, which are expected to appear in the iPhone 18 series. A recent report by DigiTimes sheds light on the background of this partnership and shows how TSMC is consistently implementing its roadmap despite growing competition.
TSMC starts 2nm production
TSMC plans to ramp up its 2nm process in the coming quarter. The price of one wafer will reach a record high of up to $30,000. Nevertheless, demand is higher than ever. Apple is securing almost half of the total production volume. Production will be based at the Hsinchu Baoshan Fab 20 and Kaohsiung Fab 22. Both sites were established in 2022 and are scheduled to begin 2nm production this year. To meet the increasing demand, TSMC has already expanded the planned monthly production capacity at its Baoshan and Kaohsiung factories.
Apple as the main customer for 2nm chips
Apple plans to use the 2nm process in the upcoming A20 chip, which is planned for the iPhone 18 series. With this move, the company is focusing on higher performance and improved energy efficiency. It is already clear that adoption of this chip generation will be higher in the first two years than for 3nm and 5nm processes. Although other industry giants such as Qualcomm, AMD, MediaTek, Broadcom, and Intel have also placed orders with TSMC, Apple remains its most important customer. According to the report, this will not change until 2027, even if more companies enter 2nm production.
Competition lags behind TSMC
Market participants had hoped that competitors like Samsung Electronics or the Japanese company Rapidus could play a larger role in the 2nm space. TSMC appears unfazed. The company is sticking to its roadmap and pushing ahead with the introduction of the 2nm process as planned. In the coming years, it is foreseeable that more companies will embrace the new technology. Starting in 2027, NVIDIA, Amazon Annapurna, Google, Marvell, Bitmain, and over ten other companies are also expected to begin mass production of their own products.
Economic prospects for TSMC
The factories' capacity utilization is already secured well into the future. 4nm and 3nm chips are fully planned until the end of 2026. Despite global trade challenges such as tariffs, exchange rate fluctuations, and rising production costs, TSMC expects profitability to exceed previous expectations.
Apple remains a key partner in TSMC's 2nm chips
Apple secures a decisive advantage in chip development by acquiring almost half of TSMC's 2nm production. The upcoming A20 processor for the iPhone 18 series is expected to not only increase performance but also have a lasting impact on the market. While TSMC further solidifies its position as a leading contract manufacturer, Apple remains its most important customer – thus securing a leading position in cutting-edge chip technology for years to come. (Image: Shutterstock / 3dartists)
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