[News] Following Overwhelming Demand for 3nm, TSMC’s 2nm Orders Exceed Expectations

Apple is anticipated to release its lightest and thinnest smartphone, the iPhone 17 Air, next year, featuring the A19 chip, according to MacRumors. Industry sources cited by Economic Daily News reveal that TSMC will likely remain Apple’s exclusive supplier for high-end processors. TSMC’s 3nm production lines are running at full capacity, and its upcoming 2nm process, slated for mass production in 2025, has already been pre-booked by Apple.

Following Apple’s adoption of TSMC’s 3nm process for all iPhone 16 chips this year, the tech giant is reportedly planning to shift to even more advanced nodes to bolster AI capabilities. Other major clients, such as Intel with its Nova Lake platform, are also adopting TSMC’s 2nm process, resulting in a backlog of orders extending into 2026. Despite the 2nm node not yet entering mass production, market demand has already exceeded expectations.

Reports indicate that TSMC is considering expanding its 2nm capacity at its Southern Taiwan Science Park facility to meet growing demand. Apple has secured the initial 2nm production batch, while other clients, spurred by rapid AI advancements, are aggressively planning their adoption. Industry insiders suggest some 3nm production lines could be repurposed for 2nm manufacturing to accommodate demand.

TSMC’s 3nm Process Fully Booked

Previously, Commercial Times reported that TSMC’s 3nm production capacity was fully booked. According to industry sources, most smartphone chips in 2025 will be manufactured using TSMC’s advanced 3nm process, with Apple’s A19 Pro expected to adopt the N3P. Additionally, AI chip giants NVIDIA and AMD are expected to launch new products in the second half of next year, both built on TSMC’s 3nm process.

The same report from Commercial Times indicates that AMD’s MI350 series will leverage TSMC’s 3nm technology, marking a significant milestone in AI accelerator advancements. NVIDIA’s R-series GPUs are also set to utilize the 3nm process, though these products are slated for release in 2026.

Furthermore, the AI PC chip co-developed by MediaTek and NVIDIA is rumored to be based on the 3nm process, exacerbating concerns about tight capacity. According to the report, this product is expected to debut in Q2 next year, with mass production in Q3. Meanwhile, Intel’s Lunar Lake chips, also based on 3nm, will primarily rely on TSMC for manufacturing.

(Photo credit: TSMC)