Apple has secured over half of TSMC’s 2-nanometer capacity for 2026 in Taiwan, responding to intensifying chip demand through early commitments and close coordination on advanced manufacturing plans.
According to Taiwan-based outlet Money UDN, Apple’s agreement grants the company more than 50 percent of Taiwan Semiconductor Manufacturing Company’s planned 2nm output for 2026. This allocation covers production from TSMC’s leading-edge facilities and follows Apple’s established approach of reserving priority access to new process nodes before broad industry rollout.
TSMC is expanding aggressively to meet what it describes as unprecedented demand for advanced fabrication. The company is planning up to 12 new cutting-edge plants in Taiwan dedicated to 2nm and 3nm nodes, aligning incremental capacity with requirements from major customers supplying smartphones, personal computers, data centers, and specialized accelerators.
Competitive pressure was highlighted on November 8, when Nvidia CEO Jensen Huang attended TSMC’s annual sports day in Hsinchu. During the event, Huang directly requested additional wafer supply to support Nvidia’s rapidly growing artificial-intelligence chip business, emphasizing the constraints facing buyers seeking guaranteed volumes at advanced geometries.
TSMC to charge Apple 8–10% more for next-gen 2nm and 3nm chips
Mass production of 2nm chips is scheduled to start in the fourth quarter of 2025. TSMC expects monthly output to reach 45,000 to 50,000 wafers by the end of that year, produced across its Hsinchu Baoshan and Kaohsiung sites. The company projects that 2nm capacity will exceed 100,000 wafers per month in 2026, yet this level remains below combined demand from Apple, Nvidia, Qualcomm, MediaTek, Amazon, and other large technology firms.
Apple intends to deploy TSMC’s 2nm process for several 2026 products, including A20 chips for the iPhone 18 series, M6 processors for MacBook models, and R2 chips for the Vision Pro headset. These components are planned to leverage performance-per-watt gains to support higher workloads within tightly constrained device form factors.
TSMC states that its 2nm technology targets up to 15 percent higher performance and 30 percent improved power efficiency compared with current 3nm chips, while incorporating increased transistor density. The company has informed customers that 2nm wafers will be priced at least 50 percent above 3nm equivalents, with estimates placing flagship mobile chip costs near $280 per unit, reflecting process complexity and capital intensity.
In October 2025, TSMC reported consolidated revenue of about $11.87 billion, a 16.9 percent year-over-year increase primarily attributed to AI-chip demand. Its advanced 3nm and 5nm lines are fully booked through late 2026, limiting near-term alternatives for buyers seeking cutting-edge capacity.
