Apple, TSMC CEOs Meet: 2nm Chip Deal in the Works?

After years of collaboration, TSMC has established a close partnership with Apple to ensure the provision of the most advanced semiconductor manufacturing processes. Apple was the first customer to place an order at TSMC’s latest 3nm process node, introducing the A17 Pro and M3 series chips last year, and this year unveiling the M4, the first chip manufactured with the second-generation 3nm process.

According to UDN, Apple’s Chief Operating Officer, Jeff Williams, recently visited TSMC’s headquarters and met with CEO C.C. Wei to discuss a potential collaboration. It is understood that this meeting was primarily focused on future 2nm chip orders.

Recent reports indicate that TSMC has made significant investments in northern (Hsinchu Baoshan), central (Taichung Science Park), and southern Taiwan (Kaohsiung Nanzi) to establish 2nm factories. In Hsinchu Science Park, the Baoshan Phase II will house Fab20, which includes four 12-inch wafer fabs (P1-P4), marking the beginning of the new N2 process. According to TSMC’s plans, Baoshan P1 will enter risk production in the second half of 2024 and achieve small-scale production by the second quarter of 2025.

Undoubtedly, Apple will be the first customer for TSMC’s 2nm process. While many speculate that the 2025 iPhone will debut with the 2nm chip, the latest reports suggest that the A19 Pro in the iPhone 17 series will miss the 2nm node, opting instead for the N3P process, while this year’s A18 Pro will use the N3E process, similar to the M4.

With the mass production of the new generation process, TSMC’s revenue is expected to increase further, with the pricing for 2nm wafers anticipated to be higher than any 3nm iterations.