Highlights:
- Apple secures about 50% of TSMC’s upcoming 2nm chip production
- 2nm A20 chip expected in 2026 for the iPhone 18 series
- Wafer prices hit a record $30,000 each amid huge demand
- TSMC expanding Hozan (Fab 20) and Kaohsiung (Fab 22) plants
- Other customers include Qualcomm, AMD, MediaTek, Intel, and more
Apple has moved early to secure its technological edge, locking in around half of the total production capacity for Taiwan Semiconductor Manufacturing Company’s (TSMC) cutting‑edge 2‑nanometer (2nm) process chips.
According to supply chain insiders, these advanced chips will debut as the A20 processor in the iPhone 18 series, expected to launch in 2026. This makes Apple the dominant customer for TSMC’s most advanced manufacturing technology in the years ahead.
Record‑High Wafer Prices
TSMC is aiming to start full‑scale mass production of its 2nm chips in the fourth quarter of this year. The cost? A record‑breaking $30,000 per wafer. Despite this steep price, demand has soared, with Apple claiming the lion’s share of the output.
To meet such intense demand, TSMC is expanding capacity at its Hozan Plant (Fab 20) and Kaohsiung Plant (Fab 22) in Hsinchu. Both sites began construction in 2022 and are projected to be fully operational by 2025.
Competition and Roadmap
While rivals like Samsung and Japan’s Rapidus are also pushing into the 2nm space, current reports suggest that TSMC’s roadmap remains unaffected. The company’s 4nm and 3nm lines are already running at full capacity until at least 2026, with revenue projections exceeding earlier forecasts.
Despite challenges such as tariffs, currency swings, and rising production costs, TSMC’s overall business remains strong.
Beyond Apple: Big‑Name Clients Lining Up
Apple isn’t the only tech giant eyeing TSMC’s 2nm chips. Qualcomm is next in line, with AMD, MediaTek, Broadcom, and Intel also securing allocations. A second wave of customers — including NVIDIA, Amazon’s Annapurna division, Google, Marvell, and Bitmain — is expected to start mass adoption by 2027.
Looking Ahead
Industry analysts, including myself, believe TSMC’s 2nm process will spread faster than previous generations like 3nm and 5nm. Apple’s early and massive commitment ensures it will maintain a leading position in smartphone performance for years to come.
