iPhone 18 A20 Chip Could Cost Apple Nearly Double The A19 As Advanced Tech Drives Prices
While earlier reports predicted a smaller increase, newer estimates are higher due to production issues.
Apple’s upcoming iPhone 18 chip could be far more expensive to make than earlier models. A new report suggests the upcoming A20 processor is likely to cost Apple up to $280 per chip. That is about 80% more than the A19.
While earlier reports predicted a smaller increase, newer estimates are higher due to production issues, according to a new report by Apple Insider. Apple plans to use TSMC’s 2-nanometer process for the A20.
Though the manufacturing costs will go up, the new processor is expected to boost the speed and power efficiency of the iPhone18 series, the report added.
Apple's move to 5-nanometer and 3-nanometer technology have given it an edge in the past too. Notably, those shifts did not raise costs this sharply.
However, the report noted that several issues now overlap as Apple moves to 2-nanometer production. Early nanosheet yields are still unstable. Moreover, advanced packaging is adding to the expenses. Apple Insider said that factors such as memory prices are also rising and the result is that each of these factors are increasing pressure on the supply chain. Together, they make the 2-nanometer transition far more costly than earlier node changes for Apple and its partners.
Apple’s yearly chip upgrades usually bring small efficiency gains for the newer models as fans expect more efficiency and advanced technology with each upcoming generation. However, the move to 2-nanometer is different as it marks a major change in design. The node uses nanosheet, or gate-all-around, transistors. These boost efficiency and density. They are also harder to produce reliably at large scale, the report added.
Gate-all-around, or GAA, is a newer transistor design. It gives engineers better control of electrical flow inside a chip. For iPhone users, these gains will appear in factors like steady performance and longer battery life. With Apple seeking to expand on-device AI features, this move spells a significant step forward.
