Apple and TSMC Collaborate on Next-Gen 2nm Chips, Eyeing 2025 Production Start: Report

Apple Inc AAPL is advancing its chip technology by designing processors that will utilize Taiwan Semiconductor Manufacturing Company’s TSM innovative 2-nanometer (nm) fabrication process, revealed through a slide from an Apple employee. 

The development follows Apple’s history of adopting cutting-edge chip technologies, including transitioning from 5nm to 3nm chips in recent years, resulting in significant performance enhancements in its product lineup. 

The 2nm chips, expected to enter production in late 2025, promise further improvements, potentially offering up to 15% speed increases or up to 30% power efficiency gains over the 3nm technology, Mac Rumors reports. 

Also Read: US Chipmakers Want More Subsidies As AI Shapes The Semiconductor Industry

Apple had secured most of TSMC’s initial 2nm production capacity, continuing Apple’s earlier approach of utilizing TSMC’s 3nm technology predominantly for its A17 Pro and M3 chip families.

The move aligns with Apple’s strategy to stay at the forefront of hardware performance, leveraging TSMC’s most advanced manufacturing capabilities. 

TSMC is preparing for this next technological leap by investing in new facilities for 2nm production. 

With rumors of TSMC developing even more advanced 1.4nm chip technology for future release, Apple’s continuous pursuit of miniaturization and efficiency sets a benchmark for the tech industry.

TSMC previously revealed intentions to build 2nm chip production facilities in the Taiwanese cities of Hsinchu and Kaohsiung, targeting mass production by 2025. Similarly, Samsung Electronics announced a substantial investment in a semiconductor venture near Seoul, concentrating on cutting-edge 2-nanometer chip technology.

TSMC stock has gained 27% year-to-date thanks to the AI frenzy while Apple lost 2%.

Price Actions: TSM shares traded lower by 1.10% at $127.17 on the last check Wednesday. AAPL shares traded lower by 1.19% at $180.42.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image Source – Apple