Apple’s ambitious plans to debut 2nm chipsets with the iPhone 17 Pro in 2025 may have hit a roadblock. Reports from South Korea indicate that TSMC, Apple’s exclusive chip supplier, is struggling with wafer yields for the 2nm process, forcing a potential delay of at least 12 months. This setback underscores the complexity of advancing semiconductor technology and the pressures facing the industry’s leading manufacturers.
TSMC’s Struggle with 2nm Yield
According to insider information, TSMC’s 2nm chips have yet to be certified for mass production due to yield issues, with current figures hovering around 60%. This means that 40% of each wafer produced is unusable, a costly inefficiency given the $30,000 price tag per wafer. At the current production volume of 10,000 wafers per month, TSMC is losing an estimated $120 million monthly due to imperfections.
To address these challenges, TSMC is working to optimize its facilities and ramp up production. The company plans to expand its capacity to 80,000 wafers per month by 2026, with additional contributions from its Arizona facility, targeting a total capacity of 140,000 wafers.
Impact on Apple and Its Plans
Apple, known for pushing the boundaries of technology, had hoped to launch the iPhone 17 Pro with a 2nm chipset, showcasing improved performance and efficiency. However, the delay means Apple will likely rely on the 3nm process for an additional year, allowing TSMC more time to enhance yields and stabilize production.
This decision aligns with Apple’s commitment to quality and cost-effectiveness, ensuring its devices maintain the high standards consumers expect.
Global Competition in Semiconductor Manufacturing
TSMC’s challenges come as the global semiconductor industry faces mounting pressures. Competitors like Samsung Electronics are also developing 2nm chips, but reports suggest they face similar issues with yield and performance. Meanwhile, companies like Nvidia and Qualcomm, major clients of TSMC, are reportedly in discussions with Samsung to diversify production as geopolitical tensions in Taiwan persist.
TSMC’s dominance in the market, coupled with its exclusive partnerships with Apple, Nvidia, and Qualcomm, underscores the stakes involved in resolving these challenges. The company’s ability to overcome production hurdles will be pivotal in maintaining its position as the industry leader.
TSMC’s Expansion Plans
TSMC’s ongoing efforts to scale up its 2nm production include significant investments in facilities worldwide:
- Arizona Facility: TSMC’s plant in Phoenix is expected to play a crucial role in achieving its 140,000-wafer capacity by 2026.
- Technology Optimization: Continuous improvements in manufacturing processes to enhance yields and reduce costs.
These efforts reflect the company’s strategy to balance the rising costs of semiconductor manufacturing with the growing demand for advanced chips.