Until recently, it was believed that Apple would become the first TSMC client to gain access to 2nm technology, and the production of the corresponding processors for the iPhone 17 Pro would be launched in 2025. Now South Korean media are reporting that due to the high cost of TSMC’s specialized services, Apple is ready to delay this step until 2026.
Image Source: TSMC
TSMC’s current 2nm capacity is just beginning to mature and will be very limited through 2025. Apple was counting on receiving 2nm processors from TSMC for its needs in the second half of this year, but now it will be forced to delay this step for about 12 months. This year, TSMC simply would not have enough capacity to produce 2nm chips in the required quantities, and their cost would be prohibitive for Apple.
According to Taiwanese sources, the yield level of usable chips on TSMC’s 2nm lines can exceed 60% acceptable for this stage of the life cycle, but each silicon wafer would cost the customer a fabulous $30,000. To reduce the cost, TSMC will have to significantly expand production volumes of 2-nm nm products. Until that happens, Apple will have to rely on TSMC’s existing N3P process to produce chips for the iPhone 17 line of smartphones that will be introduced in the coming year. It is expected that by 2026, TSMC will be able to increase the number of silicon wafers with 2nm chips processed monthly from the current 10,000 to 130,000.
Not only the Japanese Rapidus, but also the South Korean Samsung Electronics will have certain opportunities to attract customers in such a situation. The latter can offer its services for contract production of 2nm chips not only to Korean developers without their own production facilities, but also to American companies Nvidia and Qualcomm. Having an alternative contractor will allow these developers to more actively bargain with TSMC and reduce prices for its services. Some analysts call the 2nm process the “last chance” for Samsung to win large contract customers. It is expected that Samsung will begin test production of 2nm chips in the current quarter, although TSMC will take several months longer.