Preparing for iPhone 18? TSMC reportedly expanding WMCM packaging production: capacity may double to 120,000 units by 2027

Preparing for iPhone 18? TSMC reportedly expanding WMCM packaging production: capacity may double to 120,000 units by 2027

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TSMC is actively expanding its advanced packaging production capacity to secure orders for Apple’s next-generation smartphone chips. As the iPhone 18 series is about to enter the 2nm process era, the world’s leading foundry plans to upgrade its packaging technology from the current InFO to the more advanced WMCM process and is solidifying its technological moat with an aggressive capacity expansion plan.

According to media reports on the 20th, to meet demand for Apple’s A20 series chips, TSMC is increasing production capacity for WMCM (Wafer-level Multi-chip Module packaging). Institutional investors estimate that by the end of 2026, TSMC’s WMCM monthly capacity will reach 60,000 wafers and is expected to double to exceed 120,000 wafers in 2027.

This technological upgrade and capacity expansion will have a direct impact on the semiconductor supply chain. Market analysis points out that as chip packaging transitions to WMCM, back-end wafer-level testing (CP) and final testing (FT) will be divided between TSMC and its strategic partners.

This move comes as Apple is expected to launch the iPhone 18 series equipped with 2nm chips and its first foldable phone in September 2026. To showcase its latest progress in advanced packaging, TSMC is reportedly set to open its AP7 plant in Chiayi City, Taiwan, to the media for the first time on January 22. The factory, currently in the stage of equipment installation, is TSMC’s sixth advanced packaging and testing facility.

Technological Leap: From InFO to WMCM

The A20 series chips used in the Apple iPhone 18 will formally enter the 2nm era, prompting a simultaneous upgrade in packaging technology. Reports state that Apple will abandon the current InFO (Integrated Fan-Out packaging) technology and instead adopt the more advanced WMCM architecture.

Compared to InFO, WMCM’s core advantage lies in its ability to parallelly integrate chips with different functions on RDL (Redistribution Layer), including application processors (AP), memory, and even high-speed I/O die. Citing sources, media reports indicate that this architecture not only increases interconnection density and packaging yield but also significantly optimizes thermal management. Chip industry analysts point out that WMCM enables thinner chip packages while housing more memory to meet the massive computing power needs of future edge AI applications.

Aggressive Capacity Expansion and Production Line Adjustment

To meet Apple’s and future potential large-scale demand, TSMC is conducting dual-track capacity expansion. On one hand, TSMC will mainly upgrade existing InFO equipment; on the other, it is building a brand new WMCM production line at the AP7 plant in Chiayi City, Taiwan. Market estimates suggest that this combination will allow WMCM monthly capacity to rapidly climb from 60,000 wafers at the end of 2026 to over 120,000 wafers in 2027.

Additionally, TSMC is reconfiguring mature process capacity to support advanced packaging. Reports indicate that TSMC’s Fab 18 P9 plant may be transformed into an advanced packaging facility to accommodate future increases in photomask size. Meanwhile, although Fab 14 currently focuses on mature processes, it may expand its 40nm and 65nm capacity in the future, dedicated to producing critical components for advanced packaging such as Interposers and Silicon Bridges.

With increasing RDL complexity, related testing demand is also rising in tandem. Media reports show that CP and FT testing for 2nm chips has already been actively carried out since last year. Media citing equipment suppliers reveal that leading wafer foundries have already ordered hundreds of final test (FT) and system-level test (SLT) sorting machines from Taiwanese companies, with some back-end operations handed over to strategic partners.

Apple’s Full Product Line Integration Drives Demand

The driving force behind TSMC’s current capacity expansion is not limited to the iPhone. Reports indicate that Apple plans to widely adopt 2nm technology across its product line. In addition to the iPhone 18 Pro, iPhone 18 Pro Max, and its first foldable iPhone Fold, future MacBook M series chips and the R2 chip for headset devices will also use the process.

This cross-product line technology integration, combined with Apple’s alliance with Google to enter the AI field, will continue to drive demand for high-performance chips and advanced packaging. Although there are concerns that rising prices of 2nm chips and memory may lead to higher prices for end products, the race for AI computing power from cloud to edge devices has established the growth logic for the TSMC-led semiconductor ecosystem.

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