Apple is further expanding its partnership with Taiwan-based semiconductor manufacturer TSMC to maintain its dominance in the mobile processor market. It has been confirmed that the company has allocated an entire TSMC-affiliated production facility for its next-generation products, which it will introduce in 2026. This step highlights the level of competition in the industry, particularly with the upcoming 2nm manufacturing process.
Apple-TSMC partnership expands
Apple, which accounts for approximately 22 percent of TSMC’s annual revenue, directly impacts its supply chain. To avoid any disruptions to production capacity, the company has established a dedicated production line to meet high-volume orders. This entire facility will be dedicated to the production of Apple chips, which will be released in 2026.
The mobile chip market will transition to 2nm technology by 2026. Besides Apple, Qualcomm and MediaTek are also preparing to launch their own 2nm designs during this period. However, one of the most critical factors in chip production is foundry efficiency and delivery time.
Apple secures all its production capacity in advance to avoid any delays in its product launch schedule. Therefore, instead of adjusting its production plans, it is resorting to closing its production facility directly.
TSMC holds a leading position in the industry in terms of production efficiency. Extended production times due to high demand can put larger companies in a difficult position, especially due to the complexity of next-generation 2nm processes. To mitigate this risk, Apple has already reserved more than half of TSMC’s capacity.
Qualcomm and MediaTek are expected to develop chips with similar technologies, but it seems unlikely they will be able to move as quickly as Apple in production. The costs of next-generation manufacturing processes require these companies to be more careful with resource management. Apple, however, is turning to more costly but guaranteed solutions to maintain its production schedule.
Meanwhile, TSMC plans to activate its Arizona facilities to increase its production capacity. Once these facilities are operational, the company aims to reach a monthly production capacity of 200,000 wafers by 2028. However, in the short term, Apple’s production advantage seems likely to put significant pressure on its competitors.
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