Apple A20 Tipped to Use TSMC’s 2nm N2P Node with a Massive Cost Jump

The era of 2nm processors is fast approaching, but it may come with a massive shock. The next-generation 2nm manufacturing process was always expected to cost more. However, new details about the Apple A20 price suggest it could be far more expensive than anticipated.

Apple A20 Chip could cost as much as a mid-range smartphone

A new report from Taiwanese publication UDN suggests that the Apple A20 chipset, following the Apple TSMC 2nm production deal, could cost the company a staggering $280 (approximately Rs 25,000) per unit. This marks an increase of over 80% compared to the A19 chip found in the current iPhone 17.

iPhone 17 in hand in green colourway with leaves in the background — Image Credit: Beebom Gadgets

This striking price surge could be attributed to TSMC's latest 2nm N2P node, which uses advanced nanosheet transistors. It could also be due to the rising DRAM costs. To justify the costs, Apple will reportedly move from the Integrated Fan-Out (InFo) packaging to Wafer-Level Multi-Chip Module (WMCM) technology.

For those unaware, WMCM allows the CPU, GPU an NPU to exist as independent dies on a single package. This not only helps improve flexibility, but also reduces the power consumption significantly and only when needed. Combined with third-generation Dynamic Cache for the GPU, the A20 is expected to deliver a massive leap in efficiency and performance.

TSMC chipset closeup with a controller visible — Image Credit: Ishikawa.t/ Shutterstock

It's worth noting that Apple may or may not pass the cost to the end consumer. If the Cupertino giant does, expect future iPhone prices to go up by good margins. So far, manufacturers like Apple and Samsung have decided to absorb the incurring costs of the current RAM crisis. It was recently reported that the Galaxy S26 price will not change much.

We don't have much information about the iPhone 18 series at the moment. However, if Apple decides to absorb the price hikes, the standard iPhone 18 could stick to the A19 while the iPhone 18 Pro and Pro Max could use the A20.

The iPhone 18 lineup is rumoured to arrive sometime around September 2026 and Apple could launch its first foldable with the same. The iPhone Fold design renders suggest a wide form factor and it could also be powered by the Apple A20 chipset.

More details about the upcoming iPhones and the A20 chipset should surface as we inch closer to Fall 2026. Until then, we will closely cover anything that pops up, so stay tuned.