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TSMC Anticipates Surge in Demand for 2nm Semiconductors from Apple and Other Major Clients

Posted on 6 May 2025

TSMC anticipates unprecedented demand from Apple and other clients for its upcoming 2nm semiconductor production. To understand the significance of this development, we can look back at the A10 Fusion chip that powered the iPhone 7 in 2016. This semiconductor was designed by Apple and manufactured by TSMC using a 16nm process node. Fast forward to 2025, and the iPhone 17 series, set to launch later this year, will be powered by the A19 and A19 Pro processors built using TSMC’s advanced third-generation 3nm node (N3P).

The transition to smaller process node “sizes” results in smaller embedded transistors within chips. This reduction allows for a greater density of transistors, which enhances performance and energy efficiency. For example, the A10 Fusion contained 3.3 billion transistors, whereas the A17 Pro used in the iPhone 16 Pro had approximately 19 billion transistors. Estimates suggest that the A18 Pro might contain between 20 and 25 billion transistors, reflecting the rapid advancements in semiconductor technology.

Recent reports indicate that demand for TSMC’s new 2nm process node is surpassing all previous technologies. TSMC has successfully matched the defect density rates of its 3nm and 5nm nodes, signaling its readiness for this advanced fabrication. Apple is expected to be the primary user of the new 2nm chips, with plans to use the third-gen 3nm process for the iPhone 17 and debut the 2nm in its iPhone 18 series. AMD has already announced its intention to incorporate 2nm chips in its Zen 6 Venice CPUs.

A key change with the 2nm node is TSMC’s shift from FinFET transistors to Gate All Around (GAA) technology. This innovation reduces current leakage and improves performance. By the end of 2025, TSMC plans to produce 50,000 2nm wafers, with potential triple output by 2027. The company is also expanding its production facilities in Taiwan and plans to establish 2nm manufacturing in Arizona by 2028.

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