Apple, Qualcomm, and MediaTek are reportedly set to launch two nanometer systems-on-a-chip (SOCs) in late 2026, with the new processors potentially manufactured by Taiwan Semiconductor Manufacturing Company (TSMC).

According to Counterpoint Research, demand for advanced AI capabilities has seen increased adoption in 3nm and 2nm nodes, with Apple expected to move more than 80 percent of its product portfolio to 3nm mode in 2025.

Apple, Qualcomm, and MediaTek are expected to launch their first wave of flagship SoCs in late 2026, and are reliant as ever on TSMC over the likes of Samsung and Intel.

The Taiwanese chipmaker claimed almost two-thirds of the semiconductor foundry market in Q4 2024, and is expected to handle almost 90 percent of global smartphone SoC shipments at 5nm and below in 2025, according to Counterpoint.

According to Counterpoint, TSMC will start the tape-out process for the 2nm node in the second half of this year, with mass production expected in 2026.

Counterpoint senior analyst Parv Sharma said: “The current demand for complex on-device AI capabilities is a significant accelerator for moving to smaller, more powerful, and more efficient nodes.”

“This has also led to an increase in the overall cost of the SoC due to higher wafer price and rising [semiconductor] content in smartphone SoCs. The 3nm and 2nm nodes will hit a key milestone with one-third smartphone SoCs expected to feature them by 2026.”

TSMC's lead in the field comes as Huawei recently admitted its chips lag US counterparts by a generation; Samsung, meanwhile, has seen yield issues in the past, leading to delays in its 3nm production.