Apple (AAPL) Taps TSMC (TSM) for 1.4nm A22 Pro Chip in 2028; Intel (INTC) Considered for Backup

Apple (AAPL) plans to integrate TSMC's (TSM) advanced 1.4-nanometer process into its A22 Pro processor, slated for release in 2028. This move aims to significantly enhance performance and efficiency, further widening its technological lead over rivals. The A22 Pro is expected to be the first Apple chip utilizing TSMC's 1.4nm node. TSMC is accelerating the development of its 1.4nm production line, with its new Fab 25 facility, a $49 billion investment, projected to begin trial production by March 2027 and mass production by H2 2028. The 1.4nm process is projected to offer a 16% performance increase at constant power or a 27% power reduction at constant frequency compared to the N2 process. Each 1.4nm wafer is estimated to cost $45,000, leading Apple to initially adopt it only for the A22 Pro. To diversify its supply chain, Apple is evaluating Intel (INTC) as a secondary supplier for lower-end iPad and Mac chips. Intel anticipates its 14A process will enter risk production in 2028 and mass production in 2029.