Apple wants all of TSMC's 2nm chips, so they sent Jeff Williams in secret

Processor wafers [TSMC]

Last updated 3 weeks ago

Apple is preparing to start the production of chips using a 2-nanometer process, and sent COO Jeff Williams to Taiwan with a view to securing the first batch.

Apple has been proactive in pushing its chips to use the latest and smallest scale manufacturing processes, with its latest chips using a 3-nanometer foundry process. Now, it is poised to shift to 2nm.

Apple Chief Operating Officer Jeff Williams went on a secret visit to Taiwan, sources of UDN claim. The trip involved a visit to chip partner TSMC, with TSMC president Wei Zhejia in attendance to receive the COO.

The trip was reportedly to discuss 2nm production, as well as the development of more AI-forward chips, with TSMC set to produce them.

TSMC does not comment on market rumors nor about individual clients, like Apple.

The potential rewards for Apple placing the first order of 2nm chips could be massive for TSMC. Apple's payment to TSMC for the first 2nm batch could be the equivalent of TSMC's annual revenue, the report claims, and it could reach a new revenue high of NT$600 billion ($17.3 billion).

Previous rumors have said Apple has been designing 2nm processors, with the aim of producing the chips via its long-time chip partner. As for when Apple's products will use 2nm chips, consumers may have to wait until the iPhone 17 Pro in late 2025.

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21 Comments

beowulfschmidt 2206 comments · 12 Years

About 3 weeks ago

No doubt someone will claim that Apple has an unfair advantage, and buying all of the first batch is simply a tactic to suppress other potential buyers.

tmay 6399 comments · 11 Years

I very much doubt that Apple would be inclined to purchase 2nm SOC's for the equivalent of a "year's worth of revenue" at $173 B, given that Apple is typically about 25% of TSMC revenue (something on the order of $18 B in 2023).

Still, what would Apple want to do with all of those additional transistors that they are "allegedly" purchasing?

macxpress 5815 comments · 16 Years

beowulfschmidt said:

No doubt someone will claim that Apple has an unfair advantage, and buying all of the first batch is simply a tactic to suppress other potential buyers.

Apple also used to purchase all of the NAND Flash chips for its iPods, iPhones and certain Macs back in the day too....because it had the money to do so and it wanted to make sure the supply of NAND Flash wasn't the limiting factor in getting their products out the door.

tmay said:

I very much doubt that Apple would be inclined to purchase 2nm SOC's for the equivalent of a "year's worth of revenue" at $173 B, given that Apple is typically about 25% of TSMC revenue (something on the order of $18 B in 2023).

Still, what would Apple want to do with all of those additional transistors that they are "allegedly" purchasing?

My guess would be iPhones and some type of updated Mac....and obviously more M4 iPads.

MacPro 19765 comments · 18 Years

Not to mention dibs on all 1 nm, 0.5, and 0.1 nm. ;)

beowulfschmidt said:

No doubt someone will claim that Apple has an unfair advantage, and buying all of the first batch is simply a tactic to suppress other potential buyers.

Yes, it's obviously a thinopoly. ;)