The iPhone 17 lineup’s strong sales have triggered a surge in TSMC’s 3nm chipset orders, with CEO CC Wei telling investors he’s “not concerned about pre-built inventory” as the company prepares for full-scale 2nm production by year’s end. TSMC’s A19 and A19 Pro chips power all four iPhone 17 models, and stronger-than-expected shipments pushed fresh orders into the foundry.
Table of Contents
TSMC 3nm Production Overview
| Metric | Details |
|---|---|
| iPhone 17 Chips | A19 (standard) & A19 Pro (Pro models) |
| Process | 3rd-gen 3nm (N3P) |
| 2026 Forecast | 33% of smartphone chips use 3nm/2nm |
| 2nm Timeline | Full production by end of 2025 |
| Apple 2nm Share | Over 50% of initial 2nm supply secured |
| Inventory Status | Seasonal and healthy levels |
Healthy Inventory Signals Strong Consumer Demand
CEO CC Wei responded to analyst concerns by stating smartphone inventory levels have returned to seasonal and healthy ranges, signaling steady demand into 2026. This matters for consumer chips, where recovery has lagged behind AI servers. The reassurance comes as TSMC balances production between cutting-edge nodes and legacy processes.
For semiconductor industry watchers, TSMC’s smartphone SoC share at 5nm and below is forecast to hit 87% in 2025 and climb to 89% by 2028. The 3nm family maintains strong momentum while previously softer 6nm and 7nm lines show improving utilization as demand normalizes.
Apple Locks Up 2nm Supply for A20 Chips
According to United Daily News, one-third of all smartphone chipsets produced in 2026 will use TSMC’s 3nm or 2nm nodes, with Apple already securing more than half the initial 2nm supply for next year’s A20 and A20 Pro. This strategic move keeps competitors like Qualcomm’s Snapdragon 8 Elite Gen 5 and MediaTek’s Dimensity 9500 behind Apple’s performance curve.
Qualcomm and MediaTek’s partners face financial pressure as the Snapdragon 8 Elite Gen 5 and Dimensity 9500 reportedly cost $280 and $200 respectively. These premium prices reflect TSMC’s advanced node pricing, with both chips manufactured on the same 3nm process as Apple’s A19 series.
TSMC’s preparation for 2nm production positions it to maintain leadership in advanced semiconductor manufacturing. The company sees AI demand staying strong into 2025, while non-AI end markets have bottomed and now recover at a moderate pace. However, automotive semiconductors remain weak and require adjustments.
The iPhone 17’s A19 chips use TSMC’s third-generation 3nm process (N3P), offering improved performance and efficiency over previous 3nm iterations. This success validates TSMC’s massive investment in cutting-edge fabrication technology and demonstrates Apple’s ability to drive consumer demand for premium smartphones even as the market matures.
FAQs
Is TSMC worried about excess iPhone 17 chip inventory?
No, CEO CC Wei stated inventory levels are seasonal and healthy, with no concerns about pre-built stock.
When will Apple use 2nm chips in iPhones?
Apple has secured over 50% of initial 2nm supply for 2026’s A20/A20 Pro chips, likely debuting in iPhone 18.
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