"Apple has booked more than 50% of TSMC's initial 2nm (N2) capacity for 2026 to feed next-generation A20 and M5 silicon. Google and its chip partners, including Samsung and Qualcomm, are left fighting over residual wafers or staying on 3nm. TSMC retains a yield advantage over Samsung Foundry through 2027, which translates into a measurable performance gap by the time XR devices ship in volume."
"Memory tells the same story. HBM3e and HBM4 production at SK Hynix and Micron is sold out through the end of 2026, with memory prices up 80-90% versus late 2025. Apple is using its $123B cash position to pre-pay multi-year supply deals. Smaller competitors are stuck on spot pricing."
"Smart glasses are the inflection category. Unit volumes scale from roughly 6M in 2025 to 20M in 2026, with Meta and Luxottica targeting 20M Ray-Ban Meta pairs by end of 2026. Whoever controls silicon and memory sets the margin profile for the next decade."
"Apple's quarter showed Services revenue of $30.98 billion, an all-time record running at roughly 76% gross margins, paired with a $100 billion buyback authorization and a 4% dividend hike to $0.27. Tim Cook called demand for the iPhone 17 lineup"
Apple reported its best March quarter and strong Services performance, alongside large capital returns. Apple has booked more than half of TSMC’s initial 2nm capacity for 2026 to support next-generation A20 and M5 silicon. Alphabet and its partners are left competing for residual wafers or shifting to 3nm. TSMC’s yield advantage over Samsung Foundry through 2027 is expected to translate into performance differences when XR devices ship in volume. Memory supply is also constrained, with HBM3e and HBM4 sold out through end of 2026 and memory prices up sharply. Apple pre-pays multi-year supply deals using its cash position, while smaller competitors face spot pricing.
#ai-hardware-supply-chain #tsmc-2nm-capacity #hbm-memory #smart-glasses-xr #apple-services-and-buybacks
Read at 24/7 Wall St.
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