Power struggle: Apple rushes to switch to TSMC’s 1.4nm process

Apple faced the need to change the strategy of developing its own processors. According to sources familiar with the matter, the corporation will be forced to abandon TSMC’s 2nm process after two generations of use due to fierce competition for production lines caused by the boom in artificial intelligence.

Why is Apple forcing the transition to 1.4 nm?

TSMC is a strategic partner of Apple, but now the capacity of the chipmaker is overloaded. Demand for AI chips has been severely constrained even after TSMC ramped up production of 3nm wafers to 175,000 units per month. As the AI ​​market is rapidly shifting to 2nm, Apple risks facing capacity shortages. The transition to the 1.4-nm node becomes a necessary step to ensure supply stability.

Schedule of transition to new technical processes

According to current data, Apple’s road map looks like this:

• 2026: implementation of technical process N2.
• 2027: transition to the N2P standard.
• 2028: development of 1.4-nm lithography for the A22 Pro processor.

Financial and technical aspects of production

The technological race requires significant investment. Today, the cost of producing one wafer using the sub-2nm process is estimated at 1.85 million hryvnias ($45,000). Although it is expensive, Apple chooses the path of compact crystals, which allows to increase the efficiency without increasing the physical dimensions of the components, unlike many competitors.

Should we expect changes in the company’s strategy?

The main goal of the company remains unchanged – to prevent shortages. With the company expected to ship more than 240 million iPhones in 2025, the need for consistent supply is critical. Early adoption of the 1.4nm technology should give Apple priority in receiving orders from TSMC, leaving rivals like Qualcomm and MediaTek with far fewer manufacturing resources.