Report: TSMC Ahead of Schedule for 2nm Chip Production for iPhone 17, Could Face Challenges

Highlights

• TSMC is ahead of schedule in producing 2nm chips for the iPhone 17.
• Reports suggest it might need assistance from other suppliers to package these advanced chips.
• The 2nm chips might be reserved for the iPhone 17 Pro models.

Earlier this year, it was reported that Apple chipmaker TSMC is well ahead of its production schedule for advanced chips expected to be used in next year’s iPhone 17. The chipmaker is producing the first 2nm chips reportedly for iPhone 17. Now, a new report has surfaced in the Chinese media reiterating this claim and also revealing some challenges.

According to the Chinese media report, TSMC cannot manage this ultra-small process without external help.

The Chou News Agency reported says TSMC will need the help of other suppliers to package these chips and get them ready for installation in iPhones next year.

“The TSMC 2-nanometer process will be mass-produced in 2025, and the advanced process technology will continue to be proud of the group, and will be adopted by major customers Apple and AMD […]

Wafer manufacturers such as TSMC cannot develop advanced packaging technology alone, and the importance of the ecosystem is increasing day by day. It depends on close cooperation with ecosystem partners such as materials, equipment, silicon intelligence (IP) and electronic design automation (EDA), which has gradually evolved into a situation of “group fight” competition,” says Chou News Agency report.

It was previously reported that TSMC demonstrated the first 2nm chips to Apple in December 2023.

A previous Financial Times revealed, “TSMC, which dominates the global market in processors, has already shown the process test results for its “N2” — or 2 nanometre — prototypes to some of its biggest customers, including Apple and Nvidia, according to two people with direct knowledge of the discussions.”

According to the same report, Trial production started in July, well ahead of the schedule.

“Free City said equipment for 2nm production has been brought into and installed at the Baoshan plant since the second quarter, and will enter trial production in the third quarter, which is earlier than the market’s expectations for the fourth quarter. It is interpreted as speeding up to ensure a stable yield before mass production.”

Certain reports also claim that Apple may have reserved all of TSMC’s 2nm capacity. The brand previously did this for the iPhone 15 Pro’s 3nm chips.

2nm Chip Only for iPhone 17 Pro Models?

9To5Mac in its report also suggested that Apple might repeat its tradition of reserving advanced chips for Pro models only.

If this turns out to be true, the 2nm chips TSMC producing could be reserved for iPhone 17 Pro models. This also hints at the possibility that the ultra-thin iPhone mostly referred to as iPhone 17 Air might not receive this 2nm chip.

FAQs

Why does TSMC need external help for producing 2nm chips?

Chinese media reports that TSMC requires assistance from other suppliers to package the advanced 2nm chips, emphasizing the need for close cooperation within the ecosystem.

Will all iPhone 17 models feature the new 2nm chips?

There is no confirmation. However, reports suggest the 2nm chips are likely to be reserved for the iPhone 17 Pro models, potentially excluding other models like the iPhone 17 Air.

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