Apple’s A20 Pro Chip for iPhone 18 Pro May Cost 70% More
TSMC has achieved a major milestone with its 2nm trial production reaching 60% yields, a significant step toward earlier-than-expected mass production. This breakthrough positions Apple as a key early client, with plans to use the 2nm process for its upcoming A20 Pro chip, expected to debut in the iPhone 18 Pro and iPhone 18 Pro Max.
The Cost Challenge of Cutting-Edge Silicon
While the 2nm process promises better performance and efficiency, adopting it comes at a price. The A20 Pro chip’s cost is estimated to rise 70%, jumping from $50 to $85. However, this figure raises eyebrows, as it contradicts prior estimates for Apple’s chip costs:
- A17 Pro: Estimated at $130 per unit.
- A16 Bionic: Priced around $110.
Given the steep cost of 2nm wafers, which are expected to be priced at $30,000 each, an $85 per-chip estimate appears unrealistic. It’s possible the reported figure stems from incomplete data, or Apple struck an exceptionally favorable deal with TSMC, though skepticism remains high.
How TSMC Plans to Lower Costs with ‘CyberShuttle’
To address soaring costs of advanced lithography, TSMC is introducing ‘CyberShuttle’, a technique launching in April 2025. This process allows multiple companies to test their chips on the same wafer, reducing expenses during development. For Apple, this could help offset the higher production costs associated with 2nm chips.
When Will 2nm Arrive in iPhones?
According to analyst Ming-Chi Kuo, no iPhone 17 model will feature the 2nm process due to wafer cost concerns. Instead, the iPhone 18 series will be the first to adopt the A20 Pro chip, but not across all models. It’s likely that the iPhone 18 Pro and Pro Max will be the sole devices benefiting from this cutting-edge silicon.
The processors for 2025 iPhone 17 models will be made by TSMC's N3P process/3-nanometer technology. The processor for 2026 iPhone 18 models is anticipated to use TSMC's 2-nanometer technology. However, due to cost concerns, not all new iPhone 18 models may be equipped with a…
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) September 19, 2024
Final Thoughts
TSMC’s 2nm milestone marks a significant advancement in semiconductor technology, positioning Apple as one of its first high-profile clients. While cost concerns remain, TSMC’s CyberShuttle approach could offer a path to mitigate expenses. The A20 Pro chip promises to power the iPhone 18 Pro lineup, signaling a new era of efficiency and performance—but at a premium price.
