Core Insights - Apple is expected to announce its next-generation M5 processor this week, which will be manufactured using TSMC's 3nm "N3E" process node [1] - The upcoming M6 processor is anticipated to debut in 2026 and will likely be Apple's first laptop chip based on 2nm technology, indicating a move towards more advanced process nodes [1] - The M5 processor will compete with Qualcomm's newly released Snapdragon series and MediaTek's next-generation processors, although these competitors are utilizing the more advanced TSMC N3P process [1][2] Cost Considerations - Apple may have opted for the N3E process for the base M5 chip due to cost considerations, while the higher-end M5 Pro and M5 Max versions are expected to use the more advanced N3P process [2] - TSMC is reportedly planning to increase the pricing for 3nm wafers, with costs ranging from $25,000 to $27,000 per wafer, which could influence Apple's decision on chip manufacturing [1] Performance Expectations - The base version of the M5 chip is expected to have less powerful performance compared to the M5 Pro and M5 Max, which are projected to be released in early 2026 [1]

Core Viewpoint - TSMC is set to begin mass production of its 2nm process by the end of this year, with Apple securing half of the capacity for its 2nm chips by 2026 [1] Group 1: Company Developments - TSMC's stock rose nearly 1% to $265.17 ahead of market opening [1] - The upcoming iPhone 18 series will feature the A20 and A20 Pro processors, which will utilize TSMC's 2nm process [1] - The MacBook Pro's M6 processor and the next-generation Vision Pro's R2 chip will also adopt TSMC's 2nm technology [1] Group 2: Industry Implications - The collaboration between TSMC and Apple highlights the increasing demand for advanced semiconductor technology [1] - The shift to 2nm technology represents a significant advancement in chip manufacturing, potentially impacting the competitive landscape in the semiconductor industry [1]

Group 1 - TSMC's 2nm process yield for memory products has surpassed 90%, indicating significant manufacturing efficiency [1] - TSMC is targeting orders from major US tech companies such as Nvidia, Apple, Qualcomm, AMD, and Broadcom, with expectations of reaching full capacity utilization soon [1] - The Arizona facility is currently producing N4 chips, corresponding to 5nm and 4nm technologies, with Nvidia's AI chips undergoing process validation and expected to start production by the end of this year [1] Group 2 - TSMC's 2nm wafer production is projected to reach four times the volume of the previous year's 5nm production, reflecting strong demand [2] - Major clients like Apple, MediaTek, Qualcomm, and AMD are planning to utilize TSMC's 2nm process for their next-generation chips, which is expected to drive revenue growth [2] - Analysts predict TSMC's revenue growth of 26.3% and 14.1% for 2025 and 2026, respectively, with advanced process nodes below 7nm increasing from 68.8% in 2024 to 79.3% in 2026 [2] Group 3 - In advanced packaging, TSMC's CoWoS shipments are expected to increase from 585,000 units in 2026 to 923,000 units, with capacity rising from 660,000 to 1,000,000 units, representing year-on-year growth of 52% and 58% [3] - Despite currency fluctuations affecting profit expectations for 2025-2027, TSMC's revenue is still anticipated to grow by approximately 25% in 2025 [3]