Apple Inc (NASDAQ:AAPL) isn't just building the iPhone 18—it's creating a moat. By reportedly securing nearly half of Taiwan Semiconductor Manufacturing Co Ltd's (NYSE:TSM) initial 2nm chip production capacity, Apple has locked in supply for its flagship device while also erecting a "firewall" against President Donald Trump's proposed 100% tariffs on imported semiconductors.
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The move highlights how Apple's scale, foresight, and U.S. investments could shield it from the political storm that threatens to slam its rivals.
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First-Mover Advantage In Chips
The iPhone maker's reported deal to grab almost half of TSMC's first 2nm output is a flex that could leave competitors scrambling. Qualcomm Inc. (NASDAQ:QCOM) and MediaTek, already competing for cutting-edge mobile processors, may find themselves at a disadvantage, while AI chip heavyweights like Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices Inc. (NASDAQ:AMD) risk bottlenecks for their next-generation designs. Even Alphabet Inc‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google and Samsung Electronics Co Ltd (OTCPK:SSNLF), with ambitions in mobile silicon, could be forced to make do with smaller slices of TSMC's most advanced node.
For Apple, the advantage is clear: by locking in bleeding-edge chips early, it ensures the iPhone 18 launches with a performance edge just as rivals wrestle with supply constraints.
A Silicon Shield Against Tariffs
Beyond supply, Apple is hedging against politics. Trump's proposed 100% semiconductor tariffs are aimed squarely at imported chips, but Apple appears to have carved out protection on two fronts:
- The U.S. Bet: Apple pledged $100 billion in new U.S. investments, earning potential tariff immunity under carve-outs for companies reshoring or investing domestically.
- TSMC's Arizona Expansion: With TSMC's multibillion-dollar fabs under construction in Arizona, its chips could also qualify for exemptions, insulating Apple from cost shocks that could punish rivals dependent on Asia-made wafers.
Taken together, Apple's deal looks less like panic-buying and more like chess—positioning itself two moves ahead of both competitors and Washington.
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