Surging demand for artificial intelligence chips is causing significant supply constraints for TSMC's 3nm and 2nm manufacturing processes. High order volumes from AI firms are reportedly impacting production capacity for major clients, including Apple.
Apple is responding by accelerating its transition to TSMC's next-generation 1.4nm node to secure its future production pipeline. The company plans to utilize the 2nm process for only two generations before shifting to more advanced lithography.
Apple aims to move high-end components like the A22 Pro chip to the 1.4nm process around 2028. This strategic shift addresses the intense competition for wafer supply currently bottlenecking the semiconductor industry.