The Taiwanese giant TSMC finds itself at the heart of a complex situation which could impact the production of future Apple chips. While the United States has just ordered TSMC to stop its deliveries of AI chips to China, this is another threat looming over the production of the most advanced processors.
Taiwan protects its cutting-edge technology
Taiwanese Economy Minister JW Kuo has just reiterated a crucial rule: TSMC is not allowed to produce its most advanced 2-nanometer chips outside of Taiwan. . The move comes as part of a national law that requires semiconductor manufacturers to keep their latest technology on Taiwanese soil. Overseas factories must make do with producing chips from at least one older generation.
This situation could have direct repercussions on Apple, which plans to use 2nm chips in its future iPhone 18 Pro. For now, the current iPhone 16s use 3nm technology with their A18 chip. As a reminder, Apple is the only one to operate the latest generation production lines and is, in fact, very dependent on TSMC. Additionally, the company is continually seeking to move away from Asia and particularly in light of the hypothetical China-Taiwan war. The slowdown in the construction of TSMC factories in the United States is a real ax for Apple in the face of competitors who will have their older generation chips produced in America.
American ambitions thwarted
TSMC is currently building three factories in Arizona, representing a colossal investment of $65 billion. The first will start producing 4nm chips as early as December 2024, while the next two are planned to manufacture 3nm and 2nm chips starting in 2028 and 2030 respectively.
However, these plans could be jeopardized by Taiwanese law. For TSMC to produce 2nm chips in the United States, the company will first need to master 1.6nm chip production in Taiwan – a technology that is not expected until the second half of 2026, but which could be delayed.
This situation perfectly illustrates the geopolitical tensions surrounding semiconductors, with on one side the United States seeking to repatriate production to its soil, and on the other Taiwan wishing to maintain its strategic technological advantage. For Apple, this means that its most advanced chips will continue to be produced in Taiwan for the foreseeable future, despite its efforts to diversify geographically.
