Apple obtains more than half of TSMC's 2 nanometer chip production capacity.

Apple has reserved more than half of TSMC's 2-nanometer chip capacity for 2026, further solidifying its leading position in the global race for the most advanced semiconductor technology. This move highlights the explosive growth in demand for TSMC's cutting-edge processes and poses a challenge of capacity constraints for competitors such as Nvidia, Qualcomm, and Amazon. TSMC plans to start mass production of 2-nanometer chips in the fourth quarter of 2025, with an initial monthly capacity of about 45,000 to 50,000 wafers, increasing to over 100,000 wafers in 2026. However, this still may not fully meet the needs of its major customers. Nvidia CEO Huang Renxun recently stated bluntly during an event in Taiwan, "Without TSMC, there would be no Nvidia," and has formally requested an expansion of wafer supply. Apple continues its strategy of being the first to secure TSMC's 5-nanometer and 3-nanometer capacities, now also securing exclusive access to the 2-nanometer process. Apple plans to use this process in the A20 chips for the iPhone 18 series, the M6 processor for MacBooks, and the R2 chip for the Vision Pro headset in 2026. The 2-nanometer technology offers around 15% performance improvement and 30% energy efficiency improvement compared to 3-nanometer, but TSMC has informed customers that the price of 2-nanometer wafers will be at least 50% higher than 3-nanometer wafers, with flagship chip costs potentially reaching $280 each. TSMC's revenue in October was approximately $11.87 billion, a year-on-year increase of 16.9%, mainly driven by demand for AI chips. Its 3-nanometer and 5-nanometer production lines are fully scheduled until the end of 2026, indicating intensifying global competition for high-end wafer production capacity.