Apple has secured roughly half of Taiwan Semiconductor Manufacturing Co.’s initial production of 2-nanometer chips, ensuring priority supply of the A20 processor slated for the iPhone 18 line. TSMC is holding substrate prices at about US$30,000 per wafer and aims to turn out 45,000-to-50,000 wafers a month from its Baoshan and Kaohsiung fabs by late 2025, expanding to more than 100,000 wafers monthly in 2026. The deal underscores the intense scramble for leading-edge capacity as TSMC prepares to begin 2-nanometer mass production in the fourth quarter of 2025. Qualcomm, AMD, Broadcom, MediaTek and other chip designers are vying for the remaining output, but Apple’s early commitment gives it the largest single allocation of the first N2 run. At the same time, TSMC is accelerating work on its next-generation 1.4-nanometer “A14” node, with suppliers saying the company will break ground ahead of schedule in October following a technology breakthrough. The initial phase is budgeted at NT$1.2-to-NT$1.5 trillion (US$39-49 billion). TSMC is also pushing forward with two advanced-packaging facilities in Arizona. Site preparation is underway, with construction planned for the second half of 2026 and production targeted for 2028. The plants will focus on System-on-Integrated-Chips, Chip-on-Wafer and Chip-on-Panel-on-Substrate technologies to meet rising U.S. demand for artificial-intelligence and high-performance-computing devices.