TSMC has recently reached a significant breakthrough with its 2nm trial production, achieving impressive yields of 60 percent. This development suggests that the mass production of wafers using this advanced technology could commence sooner than anticipated. One of the most anticipated products to benefit from TSMC’s cutting-edge 2nm process is Apple’s upcoming A20 Pro chip, likely to be featured in the iPhone 18 Pro and Pro Max models.
However, embracing this state-of-the-art silicon technology may come with substantial financial implications for Apple. Reports suggest that the cost of the A20 Pro chipset could soar by 70 percent. Let’s delve into these figures to understand the potential impact.
According to recent estimates, the A20 Pro is expected to cost around $85 per unit, an unexpectedly low figure for a chipset manufactured with 2nm technology. For comparison, the older A17 Pro reportedly cost Apple $130 per unit, while the A16 Bionic hovered around $110. These numbers raise eyebrows, leading us to wonder whether Apple has negotiated an extraordinary deal with TSMC or if these estimations are inaccurate.
Market research firm TD Cowen previously claimed that the A18 Pro, which powers the iPhone 16 Pro Max, had a production cost of $45. This figure seems unlikely, especially if we consider that TSMC’s 2nm wafers are estimated to cost a whopping $30,000. Consequently, it’s hard to imagine the A20 Pro being priced at just $85. However, it is expected that the price for future chipsets will rise with the shift to more sophisticated lithography.
To address these cost challenges, TSMC plans to introduce a strategy known as ‘CyberShuttle’ in April next year. This approach will allow companies, including Apple, to test their chips on a shared wafer, potentially reducing expenses.
Interestingly, analyst Ming-Chi Kuo previously indicated that due to high wafer costs, the iPhone 17 series will not incorporate a 2nm A-series chip. In contrast, the iPhone 18 lineup is anticipated to be the first to showcase this technology. But Kuo also warns that not all models in the iPhone 18 series will feature the A20 Pro, largely because of the increased costs associated with the chip.
Given these pricing speculations, it’s advisable to approach these estimates with cautious skepticism. The future certainly looks promising for advancements in chip technology, but industry insiders and consumers alike should remain circumspect of purported pricing details until further information is available.
