The high wafer cost of TSMC’s 3nm process most likely discouraged companies like Qualcomm and MediaTek from placing orders, allowing Apple to grab 90 percent of the initial supply,and that too, at a discount. Now, there is the possibility that the company aims to gain an advantage against its competitors with the upcoming cutting-edge 2nm node, assuming that Apple can place enough orders with TSMC, or else it will have to pay $25,000 per wafer.

TSMC’s 2nm wafers are reportedly 25 percent more expensive than 3nn ones

A report published on DigiTimes states that TSMC’s efforts for the future will result in a new growth wave in 2024, with chip designers apparently praising the semiconductor giant on its 2nm GAA performance and yields. Unfortunately, each wafer is said to cost $25,000, which will once again discourage early adopters from attempting to obtain a foothold in the industry. For Apple, it might be a different story, thanks to the sheer order volume it provides to TSMC.

Despite each 3nm wafer reportedly costing $20,000, Apple received a discount from its partner, and it will likely get the same treatment for the 2nm process too. The report also mentions that TSMC is said to be in talks with various ‘clients’ to commence mass production in 2025. However, earlier, we talked about TSMC commencing trial productionat a facility called ‘Fab 20’ that is under construction at the Hsinchu Science Park in Taiwan, with Apple and NVIDIA seemingly the only ones wanting to place orders with the company.

Based on the previous report, only two clients are interested in the new technology. With a 25 percent price difference between 2nm and 3nm wafers, it is difficult for several players to become early adopters, and even now, Apple is seemingly the only one placing orders for TSMC’s N3B process. Eventually, we should hear about Qualcomm, MediaTek, and others gravitating to the improved and cost-effective N3E node, with TSMC likely developing multiple variants of its 2nm technology to obtain higher orders from other firms.

Currently, TSMC is said to increase its 3nm wafer production to 100,000 monthly units, but that would be in anticipation of the high iPhone 15 demand and not for any other customer. Since we will not see the 2nm process go into mass production for another couple of years, we will see what changes will happen in the future.

News Source: DigiTimes