TSMC and Apple have cultivated a close partnership, strategically securing deals to give the iPhone manufacturer a competitive edge. A recent development saw Apple's Chief Operating Officer, Jeff Williams, reportedly traveling to Taiwan to advance the company's position in the semiconductor race by securing the initial batch of TSMC's cutting-edge 2nm wafers. If negotiations between the two tech giants are successful, which appears likely, this deal could potentially generate billions in revenue for TSMC in the current fiscal year alone.
Apple's successful acquisition of the first batch of TSMC's 2nm wafers could lead to an estimated additional revenue of $31.03 billion over time. Apple has a history of being at the forefront in adopting chips manufactured using advanced processes. This trend continued with the A17 Pro chip, exclusively featured in the iPhone 15 Pro and iPhone 15 Pro Max, leveraging TSMC's first-generation 3nm process known as 'N3B'. The company continued this trend with the unveiling of the M4 chip for the latest iPad Pro models, produced using TSMC's second-generation 3nm technology.
Recently, Apple's Jeff Williams met with TSMC CEO C.C. Wei in Taiwan to discuss a potential collaboration for securing the initial shipment of 2nm wafers. Apple is rumored to be TSMC's primary customer for its 2nm technology, with the first batch of chips expected to debut in the iPhone 17 series next year. However, conflicting reports suggest that the launch of the first 2nm silicon might be delayed until late 2026, with Apple's A19 Pro chip, anticipated in 2025, utilizing the third-generation 3nm process. Since concrete details about the Apple-TSMC 2nm wafer deal are scarce, caution is advised when interpreting these reports. Nevertheless, if Apple does secure the initial 2nm batch, it could potentially contribute USD18.6 billion to TSMC's revenue in 2024, with extra USD31 billion projected over an undisclosed timeframe.
Although the pricing of each 2nm wafer remains undisclosed, it is anticipated to surpass the cost of TSMC's 3nm versions. It is reasonable to speculate that both companies will reach an agreement, as they have done in the past. Given the anticipated higher costs associated with this technology, industry players like Qualcomm, MediaTek, and others may opt to delay their transition for another year.
