Apple Delays Adoption of TSMC’s 2nm Technology for iPhones Amid Low Production Rates; Wafer Capacity Expected to Increase Eightfold by 2026

The anticipated rollout of the iPhone 17 series next year, powered by Apple’s cutting-edge A19 and A19 Pro chips manufactured using the groundbreaking 2nm process, promises to position Apple at the forefront of technological innovation. However, the company recognizes the importance of adhering to practical expectations. Recent reports indicate that TSMC has achieved a yield rate of 60 percent in its trial production of 2nm technology. While this figure is noteworthy, it is crucial that it increases significantly to satisfy major clients like Apple and justify substantial orders.

Currently, TSMC’s mass production of wafers during this trial stage yields a relatively low output. Even with optimistic projections for increased production in the upcoming year, the prohibitive costs associated with each wafer might deter Apple from utilizing this technology for its A19 and A19 Pro models. Nevertheless, forecasts suggest that by 2026, TSMC’s wafer production may grow to eight times the current output, thus becoming viable for Apple and other potential customers.

Projected Expansion of TSMC’s 2nm Wafer Production by 2026

According to new estimates, TSMC’s monthly production capacity for 2nm wafers could rise to 80,000 units by 2026, facilitating the mass production of the next-generation A20 and A20 Pro chips employing advanced lithography techniques. Notably, analyst Ming-Chi Kuo has previously indicated that Apple may opt to bypass the 2nm technology for the iPhone 17 series and instead introduce it with the iPhone 18 lineup. Kuo suggested that not every iPhone 18 model may feature the 2nm A20 due to the high associated costs. Reports suggest that the expense for each 2nm wafer could reach an astounding $30,000, underscoring the necessity for TSMC to scale up production to leverage economies of scale and reduce prices.

A recent report from Morgan Stanley, highlighted by MyDrivers, revealed that TSMC’s current trial production is limited to just 10,000 wafers per month. This figure is projected to increase to 50,000 units by next year and potentially reach 80,000 by 2026. Such an increase would enable Apple and other firms to confidently place orders. Moreover, TSMC is considering various strategies to further decrease production costs, including the introduction of a ‘CyberShuttle’ service set to launch in April next year.

This innovative wafer-sharing service will allow companies to assess their silicon on a shared test wafer, thereby reducing expenses. In addition to these production strategies, Apple is planning significant advancements for 2026 with the unveiling of the A20 and A20 Pro. These new chipsets are expected to incorporate a technology called the Wafer-Level Multi-Chip Module (WMCM) packaging, which aims to optimize size while enhancing performance. As for the initial allocation of TSMC’s 2nm shipments, Apple is likely to secure the premier position.

For further details, refer to the original news source: MyDrivers

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