Apple Secures Nearly Half of TSMC’s 2nm Chip Supply, iPad Pro’s Tandem OLED Tech Likely to Come to Future iPhones

Highlights

• Apple has secured nearly half of TSMC’s upcoming 2nm chip output for its A20 processor.
• It is expected to feature in the iPhone 18 series, outpacing rivals like Qualcomm and AMD.
• TSMC is scaling up capacity at its Baoshan and Kaohsiung fabs, aiming for 2nm mass production in 2025 despite global challenges.
• LG is trying to convince Apple to adopt Tandem OLED tech, already in iPad Pro, for iPhones in future.

Apple is reportedly set to take a major share of TSMC’s upcoming 2nm chip production. This is because its next-generation A20 processor is expected to debut in the iPhone 18 series. A fresh report now sheds light on TSMC’s production roadmap, the surge in demand and how Apple is positioning itself to dominate early access. Here’s all we know.

Apple Secures TSMC’s 2nm production

According to the DigiTimes report via 9to5Mac, TSMC will begin scaling up its 2nm process in the coming quarter. Citing industry supply chain sources, the report says the Taiwanese semiconductor giant is said to be charging as much as $30,000 per wafer, an all-time high price point. Despite the steep cost, demand remains extremely strong with Apple securing “nearly half” of TSMC’s 2nm output.

To cope with this surge, TSMC has reportedly expanded planned monthly capacity at its Baoshan and Kaohsiung facilities. Meanwhile, its 4nm and 3nm production lines are already fully booked through late 2026. Analysts expect this to significantly boost TSMC’s profitability, even with challenges such as global trade tensions, fluctuating exchange rates, and rising operational expenses.

The DigiTimes report reads, “Supply chain sources note that although some in the market once believed TSMC’s rivals—such as Samsung Electronics and Japan’s Rapidus—had the strength to grab orders, TSMC has not been affected and is continuing to advance its process roadmap as planned. The globally watched 2nm node will ramp up in Q4. According to TSMC’s plan, the Hsinchu Baoshan Fab 20 and Kaohsiung Fab 22, which both broke ground in 2022, will be key 2nm bases and will begin production in 2025.”

The report also highlights the competition for 2nm chips beyond Apple. Qualcomm is expected to be the second-largest customer, followed by AMD, MediaTek, Broadcom, and Intel. Looking further ahead, DigiTimes claims that by 2027, “in addition to NVIDIA, customers entering mass production will include Amazon’s Annapurna, Google, Marvell, Bitmain, and more than 10 other major players.”

Despite growing competition, Apple is expected to remain TSMC’s top customer for 2nm chips. The report notes that early adoption of 2nm technology is already outpacing what TSMC saw during the transitions to 3nm and 5nm generations.

LG Pushing Tandem OLED for Future iPhones

In other Apple news, it is being reported that the Cupertino giant may also bring major display upgrades alongside chip developments to its iPhones in the coming years. The latest iPad Pro models already feature Tandem OLED panels supplied primarily by LG Display. Now, LG is lobbying Apple to bring the same display technology to iPhones.

While Apple has not yet committed, reports suggest the company could introduce Tandem OLED screens in its 2028 iPhone lineup. If approved, LG could secure a stronger position against Samsung Display, Apple’s other key display supplier. LG currently holds 348 U.S. patents in the Tandem OLED domain.

The Tandem OLED panels have already been proven as a viable option for smartphones after Chinese smartphone company Honor featured the tech from BOE in its Magic6 PSR Porsche last year.

Tandem OLED works by stacking two OLED layers, which boosts brightness, extends display lifespan, and improves energy efficiency.

Interestingly, a previous report noted that Apple is considering a “simplified tandem” approach for iPhones, stacking only the blue subpixels, while keeping red and green subpixels on a single layer. This method offers a cost-effective solution to address blue subpixel degradation without significantly raising manufacturing costs.

FAQs

Q1. How much of TSMC’s 2nm chip supply has Apple secured?

Answer. Apple has secured nearly half of TSMC’s upcoming 2nm chip output, primarily for its next-generation A20 processor expected in the iPhone 18 series.

Q2. What is Tandem OLED and how might Apple use it?

Answer. Tandem OLED stacks two OLED layers to boost brightness, extend lifespan, and improve energy efficiency. Apple may adopt a simplified version in iPhones by 2028.

Q3. Why is TSMC’s 2nm production significant?

Answer. TSMC’s 2nm node is ramping up in Q4, with mass production planned for 2025. Despite high wafer costs ($30,000), demand is strong, led by Apple and other tech giants.

Also Read –

https://www.mymobileindia.com/tsmc-begins-trial-production-of-2nm-chips-ahead-of-schedule-apple-to-get-it-first/

https://www.mymobileindia.com/apples-iphone-17-pro-could-be-powered-by-tsmcs-2nm-chipset-report/