TSMC Reportedly to Begin Trial Production of 2nm Chips, All Capacity Reserved for Apple's iPhone 17 Series

Following the completion of its 2nm node development, chip manufacturer TSMC is rumored to be starting trial production of the industry's leading-edge 2nm chips. According to a report by ETNews, TSMC plans to kick off trial production next week at its facility in the Hsinchu Science Park, with all of its 2nm chip production capacity being reserved for Apple. These chips are expected to be featured in the iPhone 17 Pro and iPhone 17 Pro Max models.

TSMC's move to begin trial production of 2nm chips is reportedly ahead of schedule. These chips are set to enter mass production by next spring and will be used in the iPhone 17 series. The early trial production could be related to improving yield rates.

Yield rates for these cutting-edge chips have been a challenge. For instance, TSMC's 3nm chips have had a yield rate of just over 50%, which has been insufficient to meet market demand fully.

Starting trial production early and moving to mass production sooner can help TSMC produce more chips. It also allows the company to identify and solve problems during the trial and mass production phases, aiming to enhance yield rates as much as possible. However, some technical issues may not be quickly resolved, which has been the reason for the low yield rates of the 3nm process to date.

Given the low yield rates and Apple's large order volumes, it's not surprising that TSMC would reserve its advanced process capacity for Apple. Apple typically features the latest flagship chips in its new iPhone models each year, offering improved performance and reduced power consumption.

The upcoming iPhone 16 series, set to launch this fall, will continue to utilize TSMC's 3nm process chips, likely with little difference from the chips used in the iPhone 15 Pro series.