iphone 18 to feature tsmc's cutting-edge 2nm chips

2025-03-24 tsmc

Hsinchu, Monday, 24 March 2025.
tsmc is on track to deliver 2nm chips for apple’s iphone 18 in 2026. early production yields are promising, exceeding 60% already. tsmc is implementing cost-saving measures like the ‘cybershuttle’ program, allowing multiple clients to test designs on a single wafer. initial projections show a capacity of 50,000 wafers by the end of 2025. analysts predict significant performance and efficiency gains from the 2nm technology, giving apple a competitive edge.

2nm production boosts tsmc’s market position

TSMC’s advancements in 2nm technology solidify its market leadership in semiconductor manufacturing [1]. The company’s ability to deliver cutting-edge solutions is crucial for major clients like Apple [1][4]. TSMC’s progress is expected to positively influence its stock (TSM:NYSE) as it demonstrates a commitment to innovation and maintaining a competitive edge [GPT]. TSMC is scheduled to hold a 2nm capacity expansion ceremony at its Kaohsiung plant on March 31, with order bookings beginning April 1 [4][9]. This move signifies a major breakthrough in advanced process mass production for TSMC, positioning them as a global leader [4][9].

manufacturing capacity and expansion

TSMC is actively expanding its manufacturing capacity to meet the anticipated demand for 2nm chips [1]. The company’s Baoshan and Kaohsiung facilities are key to achieving high production volumes [1]. TSMC’s chairman, Wei Zhejia, indicated that demand for 2nm technology exceeds that of 3nm [4][9]. By the end of 2025, TSMC anticipates a potential output of 80,000 units, sufficient to meet initial 2nm process demands [1]. Monthly production is projected to increase to between 120,000 and 130,000 chips by 2026 [4].

cost considerations and competitive landscape

The cost of 2nm wafers is estimated to be $30,000, a significant increase from the $18,500 to $20,000 price range for 3nm wafers [4][5]. This price difference may lead manufacturers to pass costs onto consumers [5]. TSMC faces competition in the 2nm space from companies like Samsung and Intel [4]. Samsung plans to use its 2nm process for its Exynos 2600 platform [4]. Intel is also striving to regain process leadership with its Intel 18A (1.8nm) node, with mass production expected in mid-2025 [4].

analyst perspectives on tsmc’s 2nm technology

Analysts are optimistic about TSMC’s 2nm technology and its impact on future devices. Ming-Chi Kuo, an analyst at TF International Securities, expects Apple’s A20 chip in the iPhone 18 series to utilize TSMC’s 2nm process [1][2][6]. Kuo also noted that TSMC’s 2nm chip trial production yield was already above 60%-70% three months ago and has since improved [2][6][7]. Jeff Pu, an analyst at GF Securities, revised his expectations to align with Kuo, now anticipating the A20 chip to be based on TSMC’s 2nm process [1][6].

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2nm Technology iPhone 18