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Apple’s 2026 iPhones could become more expensive as the company moves to a 2nm A20 chip. Rising TSMC wafer prices may significantly increase processor costs, reportedly forcing Apple to choose between lower margins or higher iPhone 18 prices.
Apple’s next wave of flagship iPhones could arrive with higher price tags, as rising chip manufacturing costs threaten to squeeze the company’s margins ahead of the expected 2026 launch cycle.
Apple eyes 2nm leap for 2026 iPhones?
Apple is widely expected to adopt a 2nm manufacturing process for its next-generation mobile chipset in 2026, marking a major technological shift for the iPhone. The move may follow Samsung, which unveiled its 2nm-based Exynos 2600 processor in December.
The new Apple silicon, likely branded as the A20 or A20 Pro, is tipped to power four models scheduled for a September 2026 launch. These are expected to include the iPhone 18 Pro, iPhone 18 Pro Max, the successor to the iPhone Air, and the second-generation iPhone Fold.
TSMC wafer prices reportedly on the rise
According to reports from Taiwan, Apple’s long-time chip partner TSMC is preparing to increase prices for its advanced silicon wafers. The 2nm process relies on complex 12-inch wafers made up of around 100 layers, with the total cost estimated at about $30,000, or roughly Rs. 27 lakh, per wafer.
By comparison, wafers used in TSMC’s current 3nm process are said to cost around $20,000, or roughly Rs. 18 lakh. This sharp jump reflects both the technical difficulty of producing smaller nodes and the growing cost of materials and fabrication equipment.
A20 chip costs could surge sharply
As a result of the higher wafer prices, Apple is reportedly facing a steep increase in per-chip costs. The A20 or A20 Pro processor could cost the company close to $280, or roughly Rs. 25,200, per unit. That would represent an increase of nearly 87% compared with the estimated $150 Apple paid for the A19 Pro.
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The jump looks even more dramatic when viewed over a longer period. The reported cost of the A20 series chip would be several times higher than the roughly $50 price associated with the A18 Pro.
Notably, the report suggests Apple may be left with a difficult decision. The company could choose to absorb the additional silicon costs, which would eat into its profit margins, or pass some of the burden on to consumers by raising iPhone prices in 2026.
Samsung undercuts TSMC on 2nm pricing
In contrast, Samsung is said to be charging significantly less for its 2nm wafers. Reports indicate the South Korean firm prices its 12-inch 2nm GAA wafers at around $20,000, roughly 33% lower than TSMC’s 2nm pricing and similar to what TSMC charges for 3nm production.
That said, TSMC is believed to offer slightly better production yields, which remains a key reason Apple continues to rely on the Taiwanese foundry for its most advanced chips.
Key Takeaways
- Apple's transition to a 2nm chip manufacturing process could significantly increase production costs.
- Higher chip costs may compel Apple to raise iPhone prices, impacting consumer purchasing decisions.
- The competitive landscape with Samsung's pricing strategies could influence Apple's pricing strategy.
English (US) ·