The iPhone 17 lineup is equipped with Apple’s latest and greatest A19 and A19 Pro chipsets, and since Apple made the correct moves with its four flagships by equipping each of them with impressive hardware, TSMC is currently enjoying an influx of orders as it prepares to pursue full-scale 2nm production by the end of the year. The Taiwanese semiconductor behemoth’s Chief Executive also said that he is ‘not concerned about pre-built inventory,’ indicating that sales are as healthy as ever.
In 2026, it is estimated that 33 percent of all smartphone chipsets produced will leverage TSMC’s 3nm and 2nm processes
While the details of TSMC’s individual customers are currently unknown, as the manufacturer keeps this information a closely-guarded secret, TSMC CEO CC Wei spoke at an investor conference and responded to an analyst’s question revolving around smartphone inventory. The Chief Executive has stated that inventory levels have returned to seasonal and healthy levels, providing reassurance that there is growth in the consumer application market for 2026.
In addition to increased A19 and A19 Pro chip orders thanks to boosted iPhone 17 shipments, TSMC is also enjoying an order surge from Qualcomm and MediaTek, as their Snapdragon 8 Elite Gen 5 and Dimensity 9500 are fabricated on the same lithography. Despite both companies reportedly paying TSMC up to 24 percent higher for their chipsets, the momentum does not appear to shift in the opposite direction.
However, Qualcomm’s and MediaTek’s smartphone partners have to face the financial brunt because the Snapdragon 8 Elite Gen 5 and Dimensity 9500 are estimated to cost $280 and $200, respectively, depending on multiple factors. According to United Daily News, one-third, or 33 percent, of smartphone chipsets produced in 2026 will utilize TSMC’s 3nm or 2nm process.
Apple, which is slated to launch the A20 and A20 Pro next year, is said to have secured more than half of the initial 2nm supply to keep its competition at bay. With the progress that TSMC has made, analysts are optimistic that the premium smartphone market will stabilize, though demand for automotive semiconductors is still weak, and adjustments are necessary in this sector.
News Source: United Daily News
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