Apple is said to have changed its plan to deploy the most advanced 2nm chip for the iPhone 17 Pro series as originally targeted.
The change comes amid challenges facing leading chipmaker TSMC, which is reportedly struggling to produce wafers and has yet to certify its 2nm chips for mass production.
The iPhone 17 Pro launched this year still uses the A19 Pro chip.
Demand for test products is strong, while TSMC is adapting existing facilities to accommodate the new manufacturing process. TSMC is expected to need until 2026 to complete mass production of 2nm chips.
TSMC is currently the sole supplier of chips for Apple devices, including the iPhone and MacBook. The Taiwanese company also supplies other big names like Nvidia and Qualcomm. However, the two companies are considering partnering with Samsung Electronics to expand production if tensions in Taiwan continue to escalate.
But the A19 Pro isn't a 2nm chip as expected.
Currently, TSMC is producing about 10,000 wafers per month, with plans to expand to 80,000 wafers per month by 2026, which opens up the opportunity for the company to mass produce 2nm chips by 2026. In addition, TSMC's manufacturing facility in Arizona (USA) will contribute to the total capacity target of 140,000 wafers per month in the future.
No 2nm chips this year
If everything goes according to TSMC's plan, Apple could launch its first 2nm chip in September 2026. However, given the challenges TSMC is facing, many companies will likely continue to use the 3nm process in 2026.
Apple's competitors also have difficulty accessing 2nm chips early.
According to a report from Taiwan's Economic Daily, TSMC's 2nm wafer yield is currently only 60%, meaning 40% of it is unusable. With each wafer costing around $30,000, TSMC is losing up to $120 million a month due to inefficient manufacturing processes. To remedy the situation, Apple will continue to use the 3nm process for another year, giving TSMC time to improve productivity and adjust prices. Meanwhile, Samsung is also facing similar challenges and needs to improve both the productivity and performance of its 2nm chips.
