Apple is reportedly set to make an unconventional decision regarding the A20 chips that will power the iPhone 18 line in 2026. Historically focused on outperforming its competitors, Apple opted to invest heavily in 3nm silicon wafer production from TSMC.
This commitment allowed Apple to secure a significant portion of TSMC’s initial 3nm capacity, resulting in the iPhone 15 Pro and iPhone 15 Pro Max being the only smartphones to utilize chips built on this advanced node for over a year. Despite the successful trial production of TSMC’s upcoming 2nm chips, Apple plans to continue leveraging TSMC’s third-generation 3nm node for its A19 and A19 Pro processors, which will feature in the iPhone 17.
In a surprising twist, there are indications that Apple may stick with this 3nm technology for the upcoming A20 chip line, rather than transitioning to the more advanced 2nm process. Reports suggest that the decision stems from the high costs associated with silicon wafers; TSMC increased its prices significantly with the introduction of the 3nm process, leading Apple to ponder the financial implications of moving to 2nm.
When considering the yields from a 300mm wafer, which can range from 510 to 550 A18 chips at current 3nm efficiencies, financial constraints might delay Apple’s move to new technology until the development of the A21 and A21 Pro chips for the iPhone 19 series. Nevertheless, Apple continues to innovate, as industry analysts suggest that the A20 and A20 Pro will utilize Chip-on-Wafer-on-Substrate (CoWoS) packaging.
This advanced technique provides tighter integration of components, enhancing performance and efficiency despite not necessarily following the traditional path of shrinking process nodes.