TSMC Enters 'Combat Readiness Mode' as 2nm Capacity Fills Up, Apple Secures Early Access [Report]

TSMC has reportedly entered "combat readiness mode" as the semiconductor industry prepares for its next major leap. With the 2-nanometer era officially underway, tech heavyweights are scrambling to lock down production capacity. Nvidia CEO Jensen Huang met with TSMC executives, including Chairman C.C. Wei, over the weekend to discuss allocation strategies, signaling just how fierce the competition for these advanced wafers has become.



The foundry's initial 2-nanometer (N2) capacity is effectively spoken for. Supply chain sources indicate that tier-one clients have already booked the available slots, aligning with Wei's recent comments that customer demand for the new node was far stronger than the company ever anticipated. To keep up with that demand, TSMC recently confirmed plans to boost capital spending significantly this year.


Despite the massive influx of orders from AI chipmakers, Apple has secured its place at the front of the line. The Commercial Times reports that Apple and Qualcomm are expected to be the primary early customers as 2nm production ramps toward volume manufacturing in 2026. This capacity is critical for the A20 Pro chip slated for the iPhone 18 lineup. Early access comes at a steep cost; previous reports suggest the manufacturing expenses for these processors could climb by 80 percent compared to current generations.

The squeeze on production lines is expected to intensify next year as high-performance computing customers ramp up volume. AMD, Google, and AWS are all preparing to adopt the node for their own CPUs and custom accelerators. Nvidia, which is on a trajectory to overtake Apple as TSMC's largest customer by revenue, may be pursuing a different strategy. The report suggests Nvidia could attempt a leapfrog move by becoming the first customer to adopt the more advanced A16 process for its next-generation GPUs in 2028.

Moving to 2nm is a fundamental shift for the industry. It ends the long-running FinFET era as manufacturers move to Gate-All-Around (GAAFET) transistors, a change driven as much by power constraints as by raw performance. TSMC is already planning beyond its initial N2 rollout. The company is expected to introduce an enhanced N2P variant and the A16 node in the second half of 2026, with the latter aimed squarely at high-end AI workloads that demand denser power delivery and more complex routing.

Pressure is also building outside the wafer fabs. As AI chips move toward larger, multi-die designs, demand for advanced packaging technologies such as CoWoS and SoIC has surged. TSMC is rapidly expanding its backend capacity to prevent packaging constraints from becoming a limiting factor for its largest customers.


Please download the iClarified app or follow iClarified on X, Facebook, YouTube, and RSS for more supply chain updates.