The Apple A20 chip in next year’s iPhone will be made using a new 2nm process that will increase the performance while boosting battery life. But the new chip won’t come cheap, according to a Wednesday report. A considerable jump in price is expected … though perhaps not enough to force Apple to raise the cost of its handsets.
The same goes for the M6 processor headed for future Macs.
Apple chipmaker TSMC finally gets to 2nm
Apple designs its own processors but they’re made by TSMC. The foundry has been able to shrink the components of Apple’s chips every year or two, allowing the processors to work faster while generating less waste heat.
The current A19 chip in the iPhone 17 series is made with TSMC’s third-generation 3nm process, but the A20 is going to 2nm — that’s been rumored for months. Expect an increase of 10% to 15% in performance without additional power consumption. Alternatively, the processor will use 20% to 30% less power when running at the same speed as a 3nm chip.
A20 likely to cost Apple 50% more
The drawback is cost. “The selling price of the 2-nanometer process will increase by more than 50% next year,” China Times reported Wednesday. This isn’t TSMC getting greedy — it had to pour an enormous amount of money into developing the new technology, and needs to recoup the expense.
And it’s not like Apple can shop around. TSMC is the only company currently capable of producing 2nm processors.
What will the final cost be? Last year’s A18 chip cost Apple $45, according to an analyst’s estimate. A 50% increase hikes that to $68 — likely not enough to push Apple into increasing the price of its next-gen handsets.
Although Apple’s critics would likely accuse it of frequently bumping up its prices, it happens less often than many might realize. The base model iPhone 17 costs $799, as did every predecessor going back to the iPhone 14.
