Taiwan’s semiconductor company (TSMC) plans to begin chipset production using 2 nm process technology (N2) in late 2025 and aims to deliver the first batch by early 2026. Over the past 20 years, TSMC’s success has largely been due to its ability to introduce new production technology with annual increases in capacity, productivity and floor space, add a new node every 18-24 months, and maintain high productivity.

However, as the complexity of modern manufacturing processes becomes more and more complex, it is increasingly difficult to maintain the pace of innovation as before. With the advent of the N2 chip, there will be a strategic shift in TSMC’s node development strategy.

Apple has been TSMC’s largest revenue customer over the past decade. The company manufactures almost all Apple chips, including those used in the iPhone, iPad, and new Macs with M1 processors. Apple’s latest gadgets use a 5 nm chip. The next generation of Apple devices is expected to use 3nm TSMC chips, including the iPhone 14, which will be announced later this year. But we can expect 2 nanometer chips in Apple devices only after 2026.

Intel will use 2nm technology in its GPUs and other SoCs. Analysts at China Renaissance Securities suggest that Intel may use N2 for its next-generation graphics processor codenamed Lunar Lake.