This fall, Apple raised entry prices for the iPhone 17 Pro and iPhone Air higher than their equivalent predecessors, driving an overall lineup increase. But based on a new report, we could see even more pricing changes next year if rumored A20 chip costs prove true.
Switch to 2-nanometer process for A20 reportedly comes at a big cost
Today China Times published a report covering the topic of semiconductor inflation.
The piece outlines how growing demand and new fabrication processes have led to increased costs for TSMC and its partners over time.
But next year, it seems, is when the increases could get especially significant.
Apple’s A20 chip in next year’s iPhone lineup is widely expected to use a cutting edge new 2-nanometer process.
However, according to the report, TSMC has poured significant capital into the development of this new process, and as such it is not willing to discount or negotiate on costs like it normally might.
Instead, TSMC’s new 2-nanometer process will reportedly come with at least a 50% price increase compared to the 3-nanometer process.
Apple and TSMC don’t disclose the exact financial details of their partnership, but this could lead to very significant increases overall.
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