TSMC will hold an expansion ceremony for its new 2nm wafer fab in Kaohsiung at the end of March. According to The Central News Agency, the company will start taking orders in April. Apple is the first customer for this new process. The tech giant plans to use the 2nm-based A20 chip in its iPhone 18 series. The iPhone 18 which will feature the A20 chip is expected to launch next year.
TSMC 2nm Chip: Why It Matters
TSMC’s 2nm process (N2) is one of the most advanced semiconductor technologies in the world. It brings significant improvements over the current 3nm (N3) process. The 2nm technology uses gate-all-around (GAA) transistor design. This enhances performance, boosts power efficiency, and increases transistor density. With these improvements, devices will become faster and more energy efficient.
Details About the 2nm Process
The 2nm process is TSMC’s first chip to use the Nanosheet structure. This is a type of GAA transistor that improves chip efficiency.
- High Production Yield: TSMC’s 2nm process has already reached a trial production yield of over 60%, according to Chinese media outlet Icsmart. This shows that the production process is becoming more reliable. The company is expected to begin mass production soon.
- Expansion Plans: TSMC is ramping up its production capacity. By the end of 2025, the company will be able to produce 50,000 2nm wafers. Taking into account the full operation of its Baoshan and Kaohsiung fabs.
- Apple’s A20 Chip: Taiwanese media outlet Economic Daily News reported that Apple’s A20 chip in next year’s iPhone 18 series will feature TSMC’s 2nm process. It also disclosed that the 2nm chip will bring a 15% performance boost over the 3nm chips that will feature in the iPhone 17 series.
- Other Customers: Industry analysts believe that AMD, Intel, Broadcom, and AWS may also use TSMC’s 2nm technology for their products.
2025 Chip Market Growth
The global semiconductor market is expected to grow steadily in 2025. This follows a recovery in 2024. According to IDC, strong demand for AI chips and a gradual recovery in other sectors would be the driving force behind this growth.
- Foundry Market Growth: The foundry market is projected to expand by 18% in 2025.
- TSMC’s Market Position: TSMC is leading in advanced semiconductor technology, particularly in nodes below 5nm. It is also excelling in CoWoS (Chip-on-Wafer-on-Substrate) packaging technology. The company has received strong orders for AI accelerators, boosting its market share. Putting all these factors into consideration, TSMC’s market share is expected to reach 37% by the end of 2025.
Conclusion
TSMC’s 2nm process marks a major step forward in chip technology. Apple is leading the charge with its A20 chip in the iPhone 18 series. Other major tech firms are also likely to use this cutting-edge process. The semiconductor market is on track for strong growth, with TSMC positioned as a key player in the future of the chip industry.
Source: Giz China
