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In late 2026, Apple is set to introduce its first range of 2nm chipsets, alongside competitors like Qualcomm and MediaTek. These companies are racing to announce their own rival products as they attempt to keep pace with Apple’s technological advancements.
According to a report, Apple has secured more than half of TSMC’s initial production capacity on the advanced lithography process. This move ensures that its rivals will have limited access to these cutting-edge chips. Additionally, Apple has booked an entire manufacturing plant in Taiwan, further cementing its dominance in this competitive space.
No other company has yet to overtake Apple as TSMC’s largest customer, accounting for 22 percent of the semiconductor giant’s total revenue in 2024. A previous report stated that Apple secured nearly half of TSMC’s initial 2nm supply, with mass production expected to begin this quarter. However, the latest update from Economic News Daily suggests that Apple has taken it one step further by securing more than 50 percent of that supply.
Apple’s competition took a full year to catch up in silicon development two years ago due to the massive costs associated with producing chips on TSMC’s first-generation 3nm process. The tape-out costs alone for Apple’s M3 lineup were estimated at $1 billion, which was too expensive for companies like Qualcomm and MediaTek.
As TSMC’s newer 3nm iterations became more accessible, Apple’s rivals grew more comfortable in making the transition. They now see the risk of falling behind in the 2nm race as too great to ignore. However, Apple has consistently been TSMC’s largest customer, contributing $19.4 billion from just one client.
TSMC would find it relatively easy to sell more than half of its 2nm supply to Apple without pushing away other customers. The company aims to ramp up production in the coming months, with plans to increase monthly wafer counts to 100,000 units by 2026 and potentially reach 200,000 by 2028.
The first batch of 2nm chips for Apple has been completely booked at TSMC’s Baoshan facility. The Kaohsiung plant will cater to Qualcomm, MediaTek, and other companies. For next year, Apple is reportedly planning to launch four new chipsets fabricated on the advanced lithography process, which should be an exciting development in 2026.
News Source: Economic News Daily
