Apple Set to Lead with TSMC's 2nm in 2025 Production

In accordance with the latest insights from the industry chain, Apple is poised to pioneer the adoption of TSMC's cutting-edge 2nm GAA (Gate-All-Around) process for chip manufacturing. Concurrently, TSMC, upon receiving this notable demand, is actively engaged in strategic planning for 2nm production capacity. Following the established trend, TSMC's forefront chip technology is customarily embraced by Apple initially, with subsequent allocation of production capacity to diverse manufacturers. It is noteworthy that TSMC's production capacity is subject to augmentation solely upon the receipt of substantial customer orders.

Insiders have disclosed Apple's keen interest in securing prioritized access to TSMC's advanced 1.4nm (A14) and 1nm (A10) process initial production capacities. The progression of TSMC's 2nm technology development is proceeding seamlessly, with a scheduled adoption of GAA technology for the production of 2nm process nodes. The installation of equipment at the Baoshan P1 wafer fab, situated in the Hsinchu Science Park, is slated to commence in April 2024, with production of 2nm process chips utilizing GAA technology set to commence at the P2 and Kaohsiung fabs in 2025.

Having sustained continuous growth for 13 consecutive years, TSMC encountered a marginal 4.5% decline in revenue in 2023, demonstrating resilience in the face of industry downturns. Beyond the surge in orders for NVIDIA GPUs, sustained orders from Apple have played an instrumental role in fortifying TSMC's overall performance.

Apple stands out as TSMC's principal customer for the 3nm process in 2023, with a single wafer fetching nearly $20,000. The 3nm process, accounting for 6% of TSMC's total foundry revenue in 2023, amounted to approximately NT$130 billion.

During a recent investor conference, TSMC conveyed its anticipation of over a threefold increase in revenue from the 3nm technology by 2024, with a projected share exceeding 15%. This trajectory aligns with TSMC's commitment to pushing the boundaries of semiconductor innovation.