As the race for next-generation semiconductors heats up, Apple Inc. and Nvidia appear to be tightening their grip on Taiwan Semiconductor Manufacturing Co.'s most advanced chipmaking capacity, leaving rivals scrambling for alternatives.
TSMC is reportedly facing a shortage of 2-nanometer chip supply, with Apple having already booked more than half of the foundry's 2026 capacity, according to Taiwan-based outlet Money UDN.
Industry analysts say Apple's long-standing strategy of securing TSMC's leading-edge technology early — from 5nm to 3nm and now 2nm — gives the iPhone maker a crucial competitive edge.
By locking in capacity, Apple ensures its Apple Silicon chips use the latest process nodes before competitors can access them.
To meet soaring demand, TSMC is accelerating 2nm expansion across its Taiwan sites in Hsinchu's Baoshan district and Kaohsiung, while also fast-tracking upgrades at its Arizona facility.
The chipmaker plans to acquire additional land near its U.S. plant to increase capacity and begin mass production in the second half of 2025, with ramp-up expected in 2026.
"We are making substantial progress and it is proceeding smoothly as planned," TSMC Chairman CC Wei said during the company's latest earnings call.
Meanwhile, Nvidia CEO Jensen Huang, who met Wei in Taipei last week, urged the chipmaker to boost wafer supply amid surging AI demand.
"No TSMC, no Nvidia," Huang said during his Taiwan visit, adding that the company's AI chip demand is rising "month by month."