Apple won't use TSMC 2nm chip for M5 chip over high costs, will use SoIC packaging in late 2025

Apple has reportedly ordered next-gen M5 chips for its new iPad Pro and Macs from TSMC, with mass production expected in 2H 2025.

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In a new report from TheElec, we're learning that Apple's new M5 chips will be made on TSMC's new 3nm process node, and not the advanced 2nm node that was previously expected. Apple's current-gen M4 chips are made on TSMC 3nm process node, but the new M5 chips are NOT being made on 2nm most likely because of the higher costs involved.

• Read more: Apple expected to use TSMC's 2nm process, SoIC-X packaging tech in 2H 2025

Instead, Apple is expected to use TSMC's new System-on-Integrated-Chip (SoIC) technology, with the 3D chip-stacking approach boosts thermal management and reduces electrical leakage compared to traditional 2D designs for its new M5 processors.

Apple has reportedly expanded its cooperation with TSMC for the next-generation hybrid SoIC packaging technology, which also combines thermoplastic carbon fiber composite molding technology. This new packaging technology reportedly entered a small trial production phase in July 2024.

• Read more: Apple Vision Pro in 2025 rumor: upgraded M5 processor, cheaper version delayed
• Read more: Apple's next-gen M5 chip inside new iPad Pro in late 2025, or 2026
• Read more: Apple is TSMC's first 2nm client: new iPhone 17, SoIC packaging for M5 chips
• Read more: Apple's next-gen M5 chip: TSMC SoIC advanced packaging for future Macs, AI servers

It's expected that Apple's new M5 processors will be used in new iPad Pros and Macs, but also in Apple's AI server farms. According to a particular report, because the company is using a dual-use SoIC design, Apple can use its new M5 processor in its AI server infrastructure to increase its AI capabilities across both consumer devices (iPads, Macs, etc) and cloud services.