Apple COO Jeff Willians Reportedly Visited Taiwan To Discuss Reserving First Batch Of TSMC’s 2nm Wafers, Potentially Adding $18.6 Billion To The Foundry’s Revenue
Apple’s COO Jeff Williams has reportedly made a strategic visit to Taiwan to engage in discussions with TSMC, one of the world’s leading semiconductor manufacturers. The visit is aimed at solidifying Apple’s competitive advantage in the ever-evolving semiconductor industry by procuring the first batch of TSMC’s cutting-edge 2nm wafers. If this agreement comes to fruition, it is projected to significantly bolster TSMC’s revenue.
The collaboration between Apple and TSMC isn’t a new development. The two companies have a history of working together to produce advanced chips that power Apple’s lineup of devices. For instance, Apple’s A17 Pro chip, featured in the iPhone 15 Pro and iPhone 15 Pro Max, was produced using TSMC’s first-generation 3nm node technology. Additionally, the M4 chip used in Apple’s latest iPad Pro models was manufactured on TSMC’s second-generation 3nm process.
The recent talks in Taiwan are speculated to be around TSMC’s latest 2nm wafer technology. With Apple anticipated to be the primary customer for this new technology, it’s expected that the first batch of 2nm chips could debut in the iPhone 17 series, set to launch next year. Nonetheless, there is contrasting speculation suggesting that Apple’s A19 Pro chip, purportedly arriving in 2025, will employ TSMC’s third-generation 3nm process, pushing the introduction of 2nm technology to a later date.
Financial implications of this potential agreement are notable, with estimations suggesting an addition of $18.6 billion to TSMC’s revenue for 2024, and a cumulative $31.03 billion over time. These figures outline the magnitude of the deal and its impact on both Apple and TSMC’s business trajectories.
Although the exact costs of the 2nm wafers remain undisclosed, they are expected to command a premium compared to the 3nm wafers. This high price might deter other players in the industry, such as Qualcomm and MediaTek, from transitioning to the newer technology immediately, granting Apple a temporal monopoly on this innovation.
As the details of the discussions are yet to be confirmed, it is crucial to stay abreast of developments in this matter. The anticipated agreement between Apple and TSMC, if realized, will mark another significant leap in the tech industry, providing a glimpse into a future where devices are powered by even more advanced semiconductor technologies.
