Copyright Cult of Mac
The Apple A20 chip in next year’s iPhone will be made with a new 2nm process that will hike the performance while saving on battery. But it won’t come cheap, according to a report out Wednesday. 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 going into future Macs. Apple chip maker TSMC finally gets to 2nm Apple designs its own processors but they’re made by TSMC. And the foundry has been able to shrink the components of Apple’s chips every year or two, allowing them 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 costs Apple 50% more The drawback is cost. “The selling price of the 2-nanometer process will increase by more than 50% next year,” the China Times reported on 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 jumps 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.
