Report: Apple Dominates TSMC’s 2nm Chip Output to Outpace Rivals

Apple has secured over half of TSMC’s initial 2nm chip production. This move effectively locks competitors out of the advanced technology’s first wave. The chips are slated for mass production later this year.

This strategic booking ensures Apple’s future devices will have a significant performance lead. Rivals like Qualcomm and MediaTek face potential delays for their own next-generation processors.

TSMC’s Biggest Customer Tightens Its Grip

Apple’s massive order underscores its deep partnership with TSMC. A report from Economic News Daily confirms the tech giant’s dominant share.

This is not a new tactic for Apple. The company previously secured the bulk of TSMC’s first-generation 3nm supply.

That earlier move gave Apple a full year of market advantage. Competitors waited for more affordable production nodes to become available.

Apple remains TSMC’s largest customer by a wide margin. The iPhone maker accounted for 22 percent of the chipmaker’s 2024 revenue.

The High-Stakes Race for Chip Superiority

The competition is now forced to play catch-up. Qualcomm and MediaTek have successfully taped out their own 2nm designs.

However, their access to initial production capacity is severely limited. They will receive chips from a different TSMC facility.

TSMC’s Baoshan plant is dedicated entirely to Apple’s orders. The Kaohsiung facility will handle production for other clients.

TSMC plans a massive production ramp-up to meet soaring demand. Its goal is to produce 100,000 2nm wafers monthly by 2026.

Apple’s lock on the first 2nm chips solidifies its technological edge for years to come. This supply chain mastery is a cornerstone of its product strategy. The chip race has never been more competitive.

Info at your fingertips

What are 2nm chips?

2nm refers to a new, advanced semiconductor manufacturing process. It allows for smaller, faster, and more power-efficient processors. This technology is the next major step beyond current 3nm chips.

When will devices with 2nm chips be available?

The first commercial devices are expected in late 2026. Apple’s iPhone 18 Pro models are likely to be among the first. Other manufacturers may follow in 2027.

Why is securing production capacity so important?

Early access to new chip technology provides a major market advantage. It allows a company to launch superior products before competitors. This can lead to significant sales increases and brand prestige.

How does this affect Android phone users?

Android phones using Qualcomm and MediaTek chips may see a delay in getting 2nm technology. These devices might not feature the advanced processors until well after Apple’s launch. Performance gaps between iOS and Android flagships could widen temporarily.

Trusted Sources: Economic News Daily