Hua Er Jie Jian Wen·2026-01-20 07:00Core Insights - TSMC is actively expanding its advanced packaging capacity to secure orders for Apple's next-generation smartphone chips, particularly the A20 series for the upcoming iPhone 18, which will utilize 2nm process technology [1][2] - The transition from InFO to WMCM packaging technology is expected to enhance interconnect density, yield, and thermal management capabilities, addressing future demands for edge AI computing [2] - TSMC's aggressive capacity expansion includes upgrading existing InFO equipment and establishing a new WMCM production line at its AP7 facility in Chiayi, Taiwan, with plans to double monthly capacity from 60,000 wafers by the end of 2026 to over 120,000 by 2027 [3] Capacity Expansion and Production Line Adjustments - TSMC is implementing a dual-track capacity expansion strategy, upgrading existing InFO equipment while building a new WMCM production line [3] - The company is also reconfiguring mature process capacity to support advanced packaging, with potential transformations of its Fab 18 P9 into an advanced packaging facility and expanding 40nm and 65nm capacities at Fab 14 for critical components [3] - Testing requirements for 2nm chips are increasing, with TSMC actively procuring hundreds of final test and system-level test machines to meet the growing demand [3] Demand Drivers from Apple's Product Line - The expansion of TSMC's capacity is driven not only by the iPhone but also by Apple's plans to implement 2nm technology across its product lines, including MacBook M series chips and R2 chips for head-mounted devices [4] - The collaboration between Apple and Google to enter the AI space is expected to further increase demand for high-performance chips and advanced packaging solutions [4] - Despite concerns over potential price increases for 2nm chips and memory, the competition for AI computing power from cloud to edge has established a growth logic for TSMC and the semiconductor ecosystem [4]