Demand for AI chips has brought the 3nm supply to a near-standstill, with TSMC estimated to boost output by up to 175,000 monthly wafers, and it is still reportedly witnessing massive constraints. Unfortunately, not even a lucrative customer like Apple will receive preferential treatment from its foundry partner, and as AI firms eventually move to the 2nm process, it’ll become Déjà vu for the Cupertino firm all over again when it comes to securing supply, making the transition to the 1.4nm node one of Apple’s top goals.
Despite advanced nodes no longer offering the same benefits at an acceptable price, Apple’s shift towards the 1.4nm process has a different form of motivation behind it
For this year and 2027, we expect Apple to utilize TSMC’s 2nm N2 and N2P nodes, respectively, then move to the 1.4nm lithography for its A22 Pro in 2028. At an estimated cost of $45,000 per wafer for TSMC’s sub-2nm process, Apple is definitely making an expensive undertaking by becoming an early adopter of the Taiwanese firm’s next-generation lithography.
However, looking at the semiconductor industry landscape, Apple’s reasons for moving quickly to this process are significantly different from what they were a couple of years ago. Now, the California-based giant has little reason to gain an advantage over Qualcomm, MediaTek, or Samsung, as it already possesses one of the strongest foundations of chipset design.
For instance, the A19 and A19 Pro are up to 10 percent smaller than the A18 and A18 Pro while delivering better performance and efficiency. Producing smaller dies means more units can be mass produced on the same wafer and at a lower price. What’s even more impressive is that the A20 Pro’s package size appears unchanged compared to the A19 Pro, whereas the competition appears obsessive in increasing dimensions just to one-up Apple.
Apple’s forte in silicon design means it doesn’t need to compete with its rivals on a technological level, but moving to an advanced manufacturing process can help the company avoid the avalanche of problems associated with TSMC’s constrained chip supply.
Not wanting to face supply shortages, Apple is almost ready to jump to the 1.4nm process
With more than 240 million iPhones shipped in 2025, Apple’s volume continues to rise with demand. Unfortunately, AI firms’ ravenous demand for chips will overshadow any annual iPhone shipment capacity, and with these companies gunning for the 2nm process sooner than later, Apple doesn’t wish to remain on a supply-constrained lithography.
Sure, it’ll be a costly endeavor to move to the 1.4nm node, but it won’t be at the cost of Apple’s overall revenue getting compromised. At the very least, the company’s ruthless approach will mean Qualcomm and MediaTek will be hunting for 1.4nm crumbs as Apple gobbles up the bulk of the initial supply.
News Source: DigiTimes
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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