Apple Secures Over 50% of TSMC’s 2nm Production Capacity, Booking Entire Plant to Outpace Rivals

As we approach the end of 2026, the semiconductor industry is poised for a significant evolution, with major players such as Apple, Qualcomm, and MediaTek gearing up to unveil their inaugural 2nm chipsets. Notably, MediaTek has reportedly achieved a crucial milestone by successfully tape-out its first system on chip (SoC) designed for this cutting-edge technology, positioning itself to compete in this rapidly advancing market.

However, Apple’s dominance in this sphere appears to be formidable. Recent reports indicate that Apple has secured over 50% of TSMC’s initial production capacity for these advanced 2nm chipsets, effectively leaving competitors like Qualcomm and MediaTek scrambling for the remaining share. This strategic maneuver has allowed Apple to capture critical resources, including an entire manufacturing plant in Taiwan, underscoring the lengths to which leading companies will go to establish an early advantage in the fiercely competitive tech landscape.

Apple Remains TSMC’s Kingpin, Accounted for 22% of Total Revenue

Economic News Daily reveal that Apple has upped the ante further, claiming more than half of that supply to fend off competition from other industry giants.

Historically, it took Apple’s competitors a full year to ramp up their silicon development capabilities, primarily due to the exorbitant costs associated with mass-producing chips on TSMC’s first-generation 3nm process, referred to as ‘N3B.’ The expense of tape-out for Apple’s M3 lineup alone was estimated to reach around $1 billion—a financial hurdle that Qualcomm and MediaTek were reluctant to overcome.

With the rollout of newer 3nm processes, Apple’s rivals have gained confidence in transitioning their operations, keen to avoid falling behind in the 2nm race. Nevertheless, Apple’s unassailable position as TSMC’s most significant customer is reflected in statistics indicating that approximately 22% of TSMC’s revenue for 2024 will come from Apple, translating to a remarkable $19.4 billion attributed to a single client.

These figures suggest that TSMC is well-equipped to allocate more than half of its 2nm supply to Apple, though it remains mindful of maintaining relationships with other clients. The semiconductor powerhouse is focusing on ramping up production to meet rising demand, with ambitious targets set to increase its monthly wafer count to 100, 000 units by 2026. Plans for its Arizona facility may further enhance output, with expectations of reaching 200, 000 units by 2028.

Apple’s first batch of 2nm chips has already been fully reserved at TSMC’s Baoshan facility, leaving the Kaohsiung plant to serve Qualcomm, MediaTek, and other manufacturers. As for the upcoming year, Apple is set to roll out four new chipsets utilizing this advanced lithography—promising an exhilarating year ahead in 2026.

For more details, refer to the original report from Economic News Daily.

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