TSMC's first 2nm customer, Apple, booked most of its production capacity two years in advance!
According to some foreign media sources, Apple's largest customer, TSMC, has already received most of the initial production capacity of the 2 nm process.
In our experience, Apple usually releases TSMC's new process plan two years in advance. In addition, TSMC plans to start mass production of 2nm process in the second half of 2025, so the report can basically be regarded as real news.
So, why did Apple bring most of TSMC's 2 nm process production capacity forward by two years? What will be the impact of this partnership? This article provides a detailed analysis of this.
First, Apple advanced its 2 nm process capacity by two years.
Apple, TSMC's largest customer, is in dire need of advanced process technology. Since 2016, Apple has become TSMC's largest customer for mass production of advanced processes. Apple captured the largest market share in the first year of mass production of the 3nm process.
Apple has booked most of TSMC's 2 nm process capacity in advance for two reasons:
1.Ability to stay ahead of the curve in technology.
With the increasingly fierce competition in the smartphone market, chip performance has become an important factor in determining the success or failure of the market. Apple must take full advantage of TSMC's advanced process technology to ensure that its chips are industry leaders in performance, power consumption and size.
By setting aside 2 nm of production capacity in advance, Apple will be able to maintain its technological leadership and gain a foothold in the smartphone market for years to come.
2.Reduction in production costs.
The R&D and mass production of the 2 nm process requires a large amount of investment, and the more advanced the process, the higher the cost. However, as production increases, the manufacturing cost per wafer decreases.
Apple, the world's largest producer of smartphones, has the opportunity to take full advantage of TSMC's advanced manufacturing technology and set aside 2 nm of capacity before mass production, giving Apple more advantages and room for bargaining. By setting aside 2nm production capacity upfront, Apple will launch cheaper chips in the next few years.
3.Strengthen strategic cooperation with TSMC.
Apple and TSMC work closely for mutual benefit. Apple's pre-reserved 2 nm process capacity further strengthens TSMC's strategic partnership to ensure stable wafers for years to come**.
On the other hand, TSMC can use Apple's order to train and update advanced process technology for future production capacity expansion. This partnership is critical for both China and the United States, especially as the global semiconductor market becomes increasingly competitive.
ii.What are the implications of this collaboration?
The pre-order will give Apple priority access to the most ** chips.
TSMC's 2 nm process has significant advantages in transistor density, performance, and power consumption. This project plans to adopt new materials and processes such as extreme ultraviolet-extreme ultraviolet lithography, new channel materials, metal oxide ESL, as well as a series of packaging processes such as CODOS and INFO.
TSMC claims that its 2 nm process can integrate 100 billion transistors on a single chip, providing more powerful computing power for high-performance computing, artificial intelligence and other fields.
With early access to this advanced chip technology, Apple will be ahead of the curve in improving the performance of the next generation of iPhone chips, while also remaining competitive in the smartphone market.
For TSMC, this partnership will bring in larger orders and revenue, while also further cementing its leading position in global semiconductor manufacturing.
The development of advanced process technology is inseparable from the support of customers. If TSMC develops 2nm technology, but does not use it because there are not many consumers, it will affect subsequent production and profits, and TSMC's technology will come to a standstill.
However, TSMC has not only made money when it has placed orders for large customers like Apple, but it has also laid a solid foundation for 2 nm technology. In addition, due to the drive of large customers, more and more customers will come to seek cooperation in the future.
For the semiconductor industry, Apple's early order is good for the entire semiconductor industry chain. The 2 nm mass production technology will drive the improvement and development of related materials, devices and service levels. This will lead to more jobs in the semiconductor industry as a whole.
Conclusion. In general, Apple has booked most of TSMC's 2 nm chip production capacity in advance, which is very important for it to stay ahead of the fierce market competition. This partnership is a huge shock for both Apple and TSMC, and will also support the entire semiconductor industry chain.