The technological evolution at the heart of smartphones is reaching a new turning point. According to the latest report from Counterpoint Research, the most advanced manufacturing nodes, 3nm and 2nm, are expected to account for about one-third of global mobile SoC (System on Chip) shipments by 2026. This accelerated transition responds to the growing demand for generative artificial intelligence (GenAI) integrated into devices, immersive video games, and high-resolution content that requires greater transistor density and energy efficiency.
Apple Leads 3nm Adoption and Prepares for the Leap to 2nm
Apple was the pioneer in adopting the 3nm process from TSMC, first utilized in the A17 Pro chip of the iPhone 15 Pro in 2023. By 2025, over 80% of Apple’s portfolio will use 3nm, positioning the company as a clear leader in this transition.
Starting in 2026, Apple, Qualcomm, and MediaTek will make the next technological leap with their first chips manufactured on 2nm by TSMC, a milestone that will mark the beginning of a new era in mobile performance.
5/4nm Remains the Most Common Node in 2026
While the focus is on 2nm and 3nm nodes, the 5/4nm node will still be the most widely used in smartphones in 2026, accounting for over one-third of global SoC shipments, particularly in mid-range devices. This is due to its balance between performance and cost, suited to the computational demands of modern applications.
Entry-level 5G chips will migrate from the 7/6nm nodes to the 5/4nm node, while LTE chips will evolve from more mature nodes towards the 7/6nm.
TSMC: The Undisputed Sovereign of Mobile Chips
TSMC, the largest semiconductor manufacturer in the world, continues to solidify its dominance. By 2025, it will control approximately 87% of SoC shipments for smartphones manufactured on nodes of 5nm or below. This figure could increase to 89% by 2028, reinforcing its position thanks to the trust of major fabless chip designers such as Apple, Qualcomm, and MediaTek.
Samsung Foundry continues its development on 3nm and 2nm nodes but is facing yield issues that have hindered its mass adoption. Nevertheless, it is expected to achieve mass production on 2nm by 2026.
As for SMIC, the leading Chinese foundry player, it remains limited to the 7nm node due to geopolitical restrictions imposed by the U.S., including the ban on selling EUV machines (extreme ultraviolet lithography), essential for manufacturing chips at more advanced nodes.
AI as a Driver of Miniaturization
Device-integrated artificial intelligence is the major catalyst for this technological evolution. According to Parv Sharma, senior analyst at Counterpoint, the need for local AI capabilities—without relying on the cloud—drives the adoption of smaller and more efficient nodes, although it also raises the production costs of SoCs due to higher wafer prices and increased design complexity.
Moreover, Sharma highlights that TSMC will begin the tape-out of the 2nm node in the second half of 2025, aiming to start mass production in 2026. Initially, this technology will be reserved for premium and high-end SoCs, with broader adoption in later years.
Conclusion: The Nanometer War Enters Its Most Decisive Phase
The transition to sub-3nm manufacturing processes is not just a race for efficiency, but a strategic battle for leadership in the future of mobile computing. With TSMC as a clear frontrunner, Apple leading the charge and Samsung trying to regain ground, the next two years will be crucial in defining which companies will dominate the next cycle of innovation.
Future smartphones will not only be faster but also smarter, more efficient, and capable. All thanks to invisible advancements that fit into a space smaller than a dust particle.
Source: counterpointresearch