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first_img Apple M6 uses TSMC 2 nanometers, advanced packaging demand drives the Taiwan supply chain

Apple's first 2-nanometer M6 chip officially debuts, equipped with a 12-core CPU, 12-core GPU, and dual 16-core neural network engines, with unified memory bandwidth reaching up to 170GB per second, initially featured in the new Mac mini. This chip is manufactured by TSMC using a 2-nanometer process and is the first to adopt gate-all-around (GAA) nanosheet transistors, making it the world's first consumer-grade 2-nanometer chip.The supply chain is focused on the subsequent high-end M series packaging architecture. Based on the Fusion Architecture of the previous generation M5 Pro, M5 Max, and the four-die design of M5 Ultra, Apple chips have transitioned from a single large die to a modular design. Future M6 Pro, Max, or Ultra are expected to enhance advanced packaging requirements such as SoIC-MH and WMCM, increasing interconnect density with SoIC-MH and integrating logic, LPDDR memory, and high-speed I/O with WMCM.TSMC is actively preparing for expansion, with Zhunan AP6 as the main mass production base for SoIC, Longtan AP3 upgrading to WMCM, and Chiayi AP7 taking on related capacity. Analysts estimate that WMCM's monthly production capacity will reach about 60,000 units by the end of 2026 and over 120,000 units in 2027. Equipment manufacturers such as Hongshuo, Junhua, Yinneng, and material manufacturers Changxing, Xinying Materials, and Yongguang are expected to benefit.

TSMC's net profit in the second quarter surged by 77.4%, exceeding expectations, with the 2-nanometer process contributing to revenue for the first time

Global chip foundry giant TSMC announced its financial report for the second quarter of 2026. Benefiting from the strong demand for advanced process chips driven by global AI infrastructure development, TSMC's performance this quarter significantly exceeded market expectations. During the period, it achieved revenue of NT$1.27 trillion (approximately US$40.2 billion), a year-on-year increase of 36%; net profit reached NT$706.6 billion (approximately US$22 billion), a year-on-year surge of 77.4%, far exceeding the market's previous estimate of NT$623.7 billion. In addition, the company's gross margin for the quarter reached 67.7%, and the operating margin was 60.3%, both better than expected.In terms of process structure, advanced processes (7 nanometers and below) contributed a total of 77% to the total wafer revenue this quarter. Among them, the 3-nanometer and 5-nanometer processes accounted for 30% and 33%, respectively, while the 7-nanometer process accounted for 11%. Notably, TSMC's newly shipped 2-nanometer advanced process recorded revenue for the first time, accounting for 3%.Looking ahead, TSMC confirmed that its capital expenditure for 2026 will approach a record US$56 billion and plans to invest approximately US$26.5 billion in its advanced manufacturing park in Arizona, USA. TSMC CEO C.C. Wei stated that the current pace of capacity expansion still lags behind demand, and the situation of supply not meeting demand is expected to continue for several years. Meanwhile, despite TSMC's strong performance, the market remains somewhat cautious and concerned about whether the massive AI investments by tech giants can translate into actual returns and the medium- to long-term competitive landscape.
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