Apple, which was expected to apply TSMC's foundry (semiconductor contract manufacturing) 2 NANO meter process to product production the fastest, is reported to be planning to delay mass production. This is due to the excessive pricing of the process caused by TSMC's limited production capacity. TSMC is making every effort to increase production capacity to support the rapid mass production of advanced processes such as 2 NANO.
According to the industry on the 31st, Apple is expected to delay the mass production of the application processor (AP) to be used in the new iPhone model utilizing the 2 NANO process to 2026. Initially, Apple was anticipated to begin mass production of products using the 2 NANO process as early as the second half of next year for the AP to be embedded in either the iPhone 17 series or the 18 series.
The 2 NANO process is an advanced process that has not yet entered mass production in the foundry industry. As global foundry corporations such as TSMC, Samsung Electronics, and Rapidus compete over it, TSMC is evaluated to be leading in terms of customer acquisition and yield. TSMC is currently conducting process tests with global tech giants such as Apple, NVIDIA, and AMD, and Apple is anticipated to be the first among them to enter mass production using the 2 NANO process. Currently, TSMC is effectively monopolizing the production of advanced processors to be embedded in new products such as the iPhone and Mac series.
The problem is that, with TSMC's 2 NANO process production capacity not yet properly expanded, demand for testing is increasing, meaning that customer corporations may need to pay high prices to achieve mass production. The Taiwanese Economic Daily noted, "TSMC's 2 NANO shows a stable yield above 60%, but it may be so expensive that we could have to pay $30,000 (about 44 million won) per wafer," adding that "to lower process prices and achieve efficient process operation, TSMC needs to secure sufficient production capacity." Consequently, there is a prevailing expectation that Apple will utilize the 3 NANO third generation (N3P) process for the AP production in the iPhone 17 series next year instead of the 2 NANO.
In response to the surging demand, TSMC is fully committed to securing production capacity. TSMC's current production capacity for the 2 NANO process stands at about 10,000 wafers per month, and it is known to be investing in facilities to expand this to 80,000 wafers by 2026. During the same period, TSMC plans to increase its production capacity for the 3 NANO process as well, aiming to strengthen its lead in advanced processes. TSMC intends to secure a production capacity of around 140,000 wafers per month by increasing facilities in Arizona, United States.
Samsung Electronics, TSMC's competitor, is also making every effort to improve yield while securing customers and conducting process tests with global tech companies to capture the 2 NANO process market. A semiconductor industry official noted, "Samsung Electronics is attracting domestic fabless corporations as clients, in addition to its existing client, Preferred Networks (PFN) in Japan, and is currently in the process of testing the 2 NANO process with global big tech companies seeking to diversify their foundry manufacturers like NVIDIA and Qualcomm."
Kim Hyung-jun, a professor emeritus at Seoul National University and head of the Next Generation Intelligent Semiconductor Business Division, said, "As dependence on TSMC for advanced processes below 3 NANO increases, prices are likely to rise due to a lack of production facilities. The willingness of fabless corporations to diversify their foundry manufacturing is becoming stronger over time." He added, "For Samsung Electronics to seize this opportunity, it must improve not only the yield of the current 2 NANO process but also its performance to the level desired by the clients. This may be the last opportunity for Samsung's foundry, which is suffering from a massive deficit in the trillions of won."