Apple to Feature TSMC 2nm Chips in Future iPhones, but Not All Models

Apple to Feature TSMC 2nm Chips in Future iPhones, but Not All ModelsAccording to renowned analyst Ming-Chi Kuo, the iPhone 17 series, scheduled for release in 2024, will utilize processors manufactured with TSMC's 3nm chip technology. The iPhone 18 models, expected to debut in 2026, are projected to feature processors utilizing TSMC's 2nm technology

Apple to Feature TSMC 2nm Chips in Future iPhones, but Not All Models

According to renowned analyst Ming-Chi Kuo, the iPhone 17 series, scheduled for release in 2024, will utilize processors manufactured with TSMC's 3nm chip technology. The iPhone 18 models, expected to debut in 2026, are projected to feature processors utilizing TSMC's 2nm technology. However, due to cost considerations, not all iPhone 18 models will be equipped with 2nm processors.

Apple began incorporating 3nm chips into its iPhone and Mac products last year. The A17 Pro chip in the iPhone 15 Pro series and the M3 series chips in the Mac lineup were all fabricated using the 3nm process, representing a significant upgrade from the previous 5nm technology. This year's iPhone 16 series will feature the A18 chip, manufactured using TSMC's second-generation 3nm process. Compared to the A16 Bionic chip used in the iPhone 15 series, the A18 chip boasts improvements in both energy efficiency and speed.

TSMC plans to commence production of 2nm chips by the end of 2025, with Apple likely securing a spot as one of the first companies to utilize this new fabrication process. To meet the production demands for 2nm chips, TSMC is constructing two new factories and is in the process of applying for approval for a third. TSMC typically initiates new factory construction when a surge in capacity is needed to fulfill substantial chip orders, and the company is investing heavily in 2nm technology.

TSMC is pouring billions of dollars into this new chip technology, prompting Apple to adjust its chip design accordingly. As TSMC's largest client, Apple typically secures priority access to the latest chips. For instance, in 2023, Apple purchased TSMC's entire initial 3nm chip production capacity for its iPhone, iPad, and Mac products. This partnership often enables Apple to integrate its products with cutting-edge semiconductor technologies before its competitors.

Between the 3nm and 2nm processes, TSMC will introduce several new 3nm enhancements. TSMC has already unveiled the N3E and N3P, both enhanced 3nm processes. The company is also developing other chips, including the N3X for high-performance computing and the N3AE for automotive applications.