Until recently, it was believed that Apple would be the first to adopt TSMC’s 2-nm process technology, with production for the iPhone 17 Pro expected to start in 2025. However, South Korean media now report that Apple plans to delay this move to 2026 due to the high cost of TSMC’s services.
TSMC’s current 2-nm production capabilities are still in the early stages, with very limited capacity anticipated for 2025. Apple initially expected to receive 2-nm processors by the second half of 2025 but has now postponed this plan by about 12 months. TSMC simply cannot meet the required production volume, and the cost of manufacturing these chips remains prohibitively high for Apple.
High Costs and Limited Capacity
Reports from Taiwan indicate that TSMC’s yield for 2-nm chips could exceed 60%, an acceptable level at this stage of the production lifecycle. However, each silicon wafer is estimated to cost around $30,000. To reduce costs, TSMC needs to significantly expand production volumes.
Until this happens, Apple will rely on TSMC’s existing N3P process to produce chips for the iPhone 17 series, set to launch this year. By 2026, TSMC is expected to ramp up its monthly production capacity for 2-nm chips from the current 10,000 wafers to 130,000 wafers. We’ll keep you updated as more developments unfold regarding 2-nm production capabilities.
Competition and Opportunities
The high costs of 2-nm production are also opening opportunities for competitors like Japanese Rapidus and South Korean Samsung Electronics. Samsung, in particular, plans to establish test production of 2-nm chips this quarter and could attract clients such as Nvidia and Qualcomm. This competition may help developers negotiate better terms with TSMC and lower production costs, adds NIXSolutions.
Analysts view the 2-nm process as a critical opportunity for Samsung to secure large clients in the contract manufacturing space. While TSMC continues to develop its capacity, the presence of alternative contractors might significantly influence the market dynamics in the coming years.