Apple Secures Half of TSMC's 2nm Production Capacity for iPhone 18

Apple has ordered almost half of TSMC's initial 2nm production capacity for the iPhone 18 as the pure foundry begins mass production of its next-generation chip process.

a20 chip feature
According to DigiTimes, TSMC's 2nm process went into production in the fourth quarter of 2025 as planned, with the foundry setting substrate pricing at a premium $30,000 per unit. Despite the steep costs, chip manufacturers are said to be scrambling to secure production slots, with Apple leading the charge alongside Qualcomm for the largest allocations.

The Taiwan-based semiconductor manufacturer expects to produce between 45,000 to 50,000 wafers monthly across its Baoshan and Kaohsiung facilities by the end of 2025, with capacity scaling to over 100,000 wafers per month in 2026.

TSMC's 2nm process promises a major leap forward from current 3nm technology, with up to 15% faster performance and 30% better power efficiency compared to the A19 chips expected in iPhone 17 models. The advanced node allows for higher transistor density, which should translate to improved processing capabilities and battery life for Apple's A20 chips. Industry analysts Ming-Chi Kuo and Jeff Pu have said the A20 chip in iPhone 18 models will be manufactured with TSMC's first-generation 2nm (N2) process, so it seems all but confirmed that Apple will adopt the more advanced silicon wafer technology.

Beyond Apple and Qualcomm, TSMC's 2nm customer list will expand in 2027 to include NVIDIA, Amazon's Annapurna, Google, and more than ten other major clients. TSMC is accelerating capacity expansion plans as a result, with full utilization expected in 2026.

In a change to Apple's usual iPhone launch cycle, iPhone 18 Pro models are expected to launch in fall 2026, with the base iPhone 18 and entry-level iPhone 18e scheduled for release the following March.

Related Roundup: iPhone 18
Related Forum: iPhone

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Top Rated Comments

mihighil Avatar
23 weeks ago
2nm chips and i still cant get a separate volume slider for the alarm clock, guess we will have to wait for that 1nm chip ??
Score: 11 Votes (Like | Disagree)
BelgianChoklit Avatar
23 weeks ago
So they only got 1nm?
Score: 10 Votes (Like | Disagree)
DEMinSoCAL Avatar
23 weeks ago
"According to [I]DigiTimes ('https://www.digitimes.com.tw/tech/dt/n/shwnws.asp?CnlID=1&Cat=40&id=0000730870_CHR7LA788N295YL9QR5VE&wpidx=4'), TSMC's 2nm process went into production in the fourth quarter of 2025 as planned"...[/I]

Isn't the fourth quarter of 2025 starting Oct 1, 2025?
Score: 7 Votes (Like | Disagree)
Mac mini power user Avatar
23 weeks ago

2nm chips and i still cant get a separate volume slider for the alarm clock, guess we will have to wait for that 1nm chip ??
That's only for the iPhone 18 Pro and Pro Max models.
Score: 4 Votes (Like | Disagree)
MayaUser Avatar
23 weeks ago

I'd love to know how much is this Apple buying up 2 nm capacity to block rivals vs an actual need. I mean, Macs need performance boosts to stay ahead of the competition, but iPhones and iPads are already pretty overpowered and far ahead of the competition for what they do. Sure a move to 2 nm might boost battery life, but so would adopting SiC battery technology.
I think is more need than block
This new die will be hard and low quantity, and since this will be used in tenths of millions per year for the iphone and ipads, and macs..its for sure a more need . Intel even after 1-2 years they still didnt need 3nm even if the capacity grew
Score: 3 Votes (Like | Disagree)
Populus Avatar
23 weeks ago
It will be nice seeing Apple jump fully into the new 2nm process and leave room for other companies to finally, massively adopt the N3E or N3P process as their baseline. The 3nm technology has proven to be a good step up in performance/efficiency. For one, the future gaming consoles such as PS6 will likely be built using those 3nm process.

We’ll see if the jump with the 2nm is even bigger! The article mentions 15% performance boost and 30% efficiency improvements. Usually those are either one or the other, but if this time they come together, we could be seeing performance improvements of 30% or even more if Apple decides to not improve the thermals and reduce the heat. Something I wouldn’t like but, you know, performance matters more I guess…

Along with the new manufacturing process and the new GAA-FET transistor technology, I wonder if Apple will introduce a new, novel, revolutionary new SoC architecture, or they will just stick to improving the cores. Seeing the interest in the industrial spying that has happened recently with the A20 design, I lean more towards the first option, and hopefully the A20 and M6 will bring us one of the biggest generational leaps in Apple Silicon ever.
Score: 3 Votes (Like | Disagree)