Apple Is Expected to Be First in Line for TSMC's 2nm Chips

Apple and TSMC have been joined at the hip for quite some time now. Apple is its biggest customer and always the only company brave (and rich) enough to be first in line whenever it rolls out an all-new fabrication node. That pattern will continue in 2025 as Apple is reportedly already in discussions with TSMC about its next-generation 2nm technology.

Apple is currently the only company shipping products made with TSMC's most advanced node, which is 3nm. It made headlines in 2023 by purchasing all of TSMC's 3nm output for the year—a luxury few companies can afford as yields are always low until manufacturing kinks can be resolved. Apple supposedly wasn't forced to pay for defective chips. But TSMC only grants that privilege to Apple due to the size of its account, meaning other companies typically have to just get in line behind Apple.

TSMC added 2nm plans to its roadmap in April of last year, plugging it into the year 2025. Credit: TSMC

DigiTimes is reporting that Apple and TSMC are already planning for the future, as it's expected to begin 2nm production next year, with Apple again expected to be first in line. It's unclear if TSMC will be able to hit that target, though, which could create some issues for Apple's launch plans for iPhone, Mac, and iPad. Apple customers are used to seeing a new M-class and A-class chip every year on a new node, but it sounds like the M4 and A18 Pro will have to use a second-generation 3nm process for its 2024 launch products. As Macrumors notes, TSMC will have several new variants of 3nm in production this year, including N3E, N3P, and eventually, N3X for high-performance computing.

We'll have to wait and see if TSMC can hit its launch targets. The jump to 2nm will be a massive transition for the company as it will transition beyond FinFET for the first time, as 2nm will be made with gate-all-around (GAA) nanosheet transistors and will eventually add backside power delivery. The company began researching this node back in 2020 and is planning on launching it next year alongside 3nm, though there have also been rumors of it being pushed to 2026. Regardless, Apple will use 3nm again for its 2024 products as it will have no choice but to do so.

Intel is expected to leapfrog TSMC soon with its 2nm 20A process, which is due later this year. If that comes to pass, it would at least open the door to Apple theoretically considering switching foundries to access the most advanced nodes available. We realize that seems like a pipe dream, but Intel seems intent on taking back the mantle of process leadership and is saying it's locked and loaded to deliver on its roadmap.