Apple has traditionally used TSMC's most advanced nodes exclusively, and it seems this relationship will continue for a while longer. According to Taiwan's economic newspaper, Economic Daily News, Apple's COO Jeff Williams secretly visited Taiwan and met with TSMC executives to discuss a contract to secure the first batch of TSMC's 2nm process. If the two companies reach an agreement, it could boost TSMC's revenue by several billion dollars this year alone.
Securing 2nm Would Be a Major Revenue Boost for TSMC
This isn't the first time Apple has made such a move. When TSMC first began production on its 3nm process, Apple went to TSMC to contract the first batch of that 3nm production. That technology, "N3B," was used to manufacture the "A17 Pro chip," the world's first 3nm mobile chip, found in the iPhone 15 Pro. Apple's M4 chip, found in the new iPad Pro, uses an evolved version of this 3nm technology called "N3E."
According to Economic Daily News, Apple's Jeff Williams recently visited Taiwan and met with TSMC CEO C.C. Wei to discuss a potential partnership to secure the first batch of 2nm wafers. Apple has long been reported to be a key customer for TSMC's 2nm technology, though opinions differ on when this 2nm chip will actually be released.
Some reports suggest it will debut in the iPhone 17 lineup in 2025, while others say that since 2025 will adopt the third-generation 3nm process, the first 2nm silicon won't arrive until late 2026.
Since there is no concrete information regarding the specifics of an Apple-TSMC 2nm wafer agreement, this report should still be viewed as fairly speculative.
That said, assuming Apple does secure the first batch of 2nm chips, it could add $18.6 billion to TSMC's revenue in 2024, followed by an additional $31.03 billion during an as-yet-undisclosed period.
Economic Daily News did not mention the price of each 2nm wafer, but it will undoubtedly be more expensive than any of TSMC's 3nm products. As seen with the 3nm node, companies like Qualcomm and MediaTek are likely to wait about a year before transitioning to 2nm due to this pricing, which means Apple's advantage is likely to remain unshaken.
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