Apple Secures Half TSMC's 2nm Chip Supply For IPhone 18

TSMC is preparing to start mass production of 2nm wafers for Apple (photo; x @spidermac)

JAKARTA - TSMC is preparing to start mass production of 2nm wafers by the end of 2025, and Apple has secured half of its initial production capacity. The chip is expected to be used for the A20 processor on the iPhone 18, while other tech giants such as Qualcomm and AMD will have to wait their turn.

Apple will launch the iPhone 17 series on September 9. Although specifications have not been confirmed, rumors say that the new iPhone will be powered by Apple's newest A19 chipset, made with the TSMC 3nm process. However, in 2026, Apple is expected to switch to a 2nm chip from TSMC.

According to a report from DigiTimes, TSMC will start full-scale 2nm wafer production by the end of 2025, and Apple managed to secure half of TSMC's initial production capacity. This chip will not be used on the iPhone 17, but for the A20 chipset which will debut on the iPhone 18 lineup. Apple's move to secure half of TSMC's capacity is not surprising.

Apple and TSMC have established very close cooperation over the past few years. Thanks to TSMC's advanced manufacturing process, Apple is capable of creating powerful and efficient chipsets for iPhones, iPads, and even Mac computers.

The report states that TSMC is estimated to reach production capacity of 45,000 to 50,000 wafers per month. Each wafer is reportedly worth 30,000 US dollars, more expensive than the previous wafer. This has the potential to cause an increase in smartphone prices by 2026.

Competition for 2nm Chips

Apple isn't the only one targeting 2nm chips. Apart from Apple, TSMC is also producing chips for other big names in the tech industry, such as Qualcomm, whose chipsets are used on the majority of Android smartphones around the world.

Qualcomm is expected to launch its next-generation Snapdragon chipset, Snapdragon 8 Elite 2, next month. However, this chipset is rumored to still be using the 3nm TSMC process. There are rumors that Samsung will initially produce a 2nm version, but the plan is cancelled. Like Apple, Qualcomm will most likely introduce a 2nm chipset in 2026.

AMD, MediaTek, and Broadcom are also TSMC customers, and they are most likely all very enthusiastic about getting chips with this latest technology.