Apple plans to introduce 2 nm chips with the iPhone 17 Pro in 2025. However, this plan may be delayed by a year due to TSMC’s production difficulties. According to news from South Korea, yield issues with TSMC’s 2nm manufacturing process have led to the chips not yet being approved for mass production. Due to the high demand and the density of test products, the Taiwan-based manufacturer is forced to adapt its existing facilities to the new process, which slows down the process.
TSMC, the sole authority in the production of chips for Apple devices, provides services to leading companies such as Nvidia and Qualcomm, as well as products such as iPhone and MacBook. However, if political tensions in Taiwan increase, these two technology giants are reportedly considering shifting their production to South Korean Samsung Electronics.
TSMC currently produces 10,000 wafers per month and aims to increase this capacity to 80,000 by 2026. Additionally, the total production capacity is planned to reach 140,000 units once the facility in Arizona becomes operational.
According to Taiwan’s Economic Daily, the manufacturing efficiency of 2nm wafers is at 60 percent, meaning 40 percent of each wafer is unusable. Considering that the production cost of one wafer is 44 million South Korean won (about $30,000), TSMC loses $120 million every month.
It is stated that Apple will continue the 3 nm production process for another year to solve the efficiency problems. During this period, TSMC aims to increase efficiency and reduce production costs.
Samsung, TSMC’s biggest rival, still faces shortcomings in the efficiency and performance of 2nm chips. The company’s current performance lags behind its Taiwanese rival. Samsung needs to improve its technology to provide both efficiency and cost advantages.
Apple’s decision to delay its 2nm chips could profoundly impact not only the company’s future product plans, but also global chip manufacturing competition. It is critical for TSMC to overcome these challenges and maintain its leadership in the industry.
Apart from Apple, Samsung also has similar problems
Samsung, TSMC’s biggest rival, still faces shortcomings in the efficiency and performance of 2nm chips. The company’s current performance lags behind its Taiwanese rival. Samsung needs to improve its technology to provide both efficiency and cost advantages.
Apple’s decision to delay its 2nm chips could profoundly impact not only the company’s future product plans, but also global chip manufacturing competition. It is critical for TSMC to overcome these challenges and maintain its leadership in the industry.