TSMC Sees Surge in 3nm Chipset Orders Due to Rising iPhone 17 Shipments; CEO Expresses No Concern Over Pre-Built Inventory

Apple’s newest iPhone 17 series showcases the cutting-edge A19 and A19 Pro chipsets, marking a significant advancement in mobile technology. This strategic development has not only propelled the iPhone lineup but has also led to a surge in orders for TSMC, the Taiwanese semiconductor giant. As TSMC gears up for large-scale production of its 2nm process by the end of this year, the company’s Chief Executive has expressed confidence in the current demand, stating that he is “not concerned about pre-built inventory.” This reflects a robust sales environment for their leading-edge technology.

Projected Impact of TSMC’s Advanced Technologies by 2026

While specifics regarding TSMC’s clientele remain closely guarded, CEO CC Wei recently addressed stock levels during an investor conference, reassuring analysts that inventory has returned to seasonal norms. This suggests a positive trend in the consumer market, with expectations for growth in 2026.

Not only is TSMC benefiting from the iPhone 17’s success with the A19 and A19 Pro chips, but it is also experiencing increased orders from major players like Qualcomm and MediaTek. Their latest chipsets—the Snapdragon 8 Elite Gen 5 and Dimensity 9500—are produced using TSMC’s advanced lithography processes. Despite these customers paying significantly higher prices—reportedly up to 24 percent more for their chipsets—the demand trajectory remains strong.

However, this pricing strategy places financial pressure on Qualcomm’s and MediaTek’s smartphone partners, with the expected costs for these chipsets being around $280 for the Snapdragon 8 Elite Gen 5 and $200 for the Dimensity 9500. According to projections from United Daily News, by 2026, approximately 33 percent of all smartphone chipsets will be manufactured using TSMC’s cutting-edge 3nm and 2nm technologies.

Looking ahead, Apple appears poised to maintain its competitive edge as it prepares to unveil the A20 and A20 Pro chipsets in the coming year. Reports suggest that Apple has secured more than half of TSMC’s initial 2nm production capacity. This proactive approach is anticipated to affect market dynamics significantly, although it is worth noting that demand for automotive semiconductors continues to lag, with necessary adjustments still ongoing in that sector.

For further details, visit United Daily News.

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