Apple Secures Nearly Half of TSMC’s 2nm Chip Supply, iPhone 18 to Debut A20 Processor in 2026

By late 2025, TSMC is expected to begin large-scale 2nm chip production, and Apple is anticipated to take nearly 50 percent of that output. These chips will power Apple’s new A20 processor, designed for the iPhone 18 series in 2026.

Apple is expected to use TSMC’s 2nm chips in its A20 processor, debuting with the iPhone 18 series in 2026 as the world’s first 2nm-powered device.

TSMC is building these chips in its big factories in Baoshan and Kaohsiung, Taiwan. The company has faced challenges in making the chips because the 2nm process is very advanced. But the demand is so strong that all production slots are already booked until the end of 2026. Each chip wafer is priced at about $30,000 (around ₹26.3 lakh), which is the highest cost ever in chip-making.

Apple is the biggest customer. Qualcomm is the second largest and will use the chips in its Snapdragon processors for Android phones. Other companies in the first group of customers include AMD, Intel, Broadcom, and MediaTek. They plan to use these chips for products like computers, servers, and networking equipment.

Apple is expected to use TSMC’s 2nm chips in its A20 processor, debuting with the iPhone 18 series in 2026 as the world’s first 2nm-powered device.

From 2027 onwards, many more companies will start using the 2nm technology. That list includes Nvidia, Amazon’s Annapurna Labs, Google, Marvell, Bitmain, and several others. TSMC is preparing to expand production further to meet this rising demand.

For users, the benefits of 2nm chips may not be very clear at first. But, over time, these chips will bring faster performance, better energy savings, and longer battery life in devices. They will also be important for AI-based features, which need powerful and efficient processors.

For Apple, having early access to nearly half of the supply means future iPhones, iPads, and Macs will stay ahead of rivals. The iPhone 18, launching in late 2026, is likely to become the world’s first consumer device powered by a 2nm chip.

Experts believe the move to 2nm technology is a big turning point in the chip industry. These processors will run faster, use less power, and open doors for better AI, smartphones, and computers. With Apple leading the shift in 2026, and others like Qualcomm, Nvidia, and Google following from 2027, the 2nm era is ready to define the next big step in global technology.

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