Apple's 2nm A20 Chip for iPhone 18 Pro to Cost $280, an 80% Price Hike [Report]

Apple is expected to rely exclusively on TSMC as the foundry for its upcoming 2-nanometer A20 processor. While this keeps the iPhone maker at the leading edge of performance, it comes with a massive price hike. The Taiwanese foundry is also widely expected to secure 2-nanometer orders from Qualcomm and MediaTek, effectively cornering the market for next-generation mobile silicon.



The cost of staying ahead is steep. According to the Economic Daily News, the A20 chip destined for the iPhone 18 Pro could cost Apple around $280 per unit. That represents a jump of more than 80 percent over the current generation. The industry is already bracing for what is being described as the "most expensive mobile chip in history," a scenario that aligns with earlier warnings that TSMC planned to raise prices across its most advanced nodes.


TSMC officially kicked off mass production for its 2nm (N2) process in the fourth quarter of 2025. It is not slowing down, either. The company is pushing ahead with an enhanced N2P process that promises better power efficiency and speed, with production expected to ramp up in the second half of 2026. While Apple is the headliner, Qualcomm's Snapdragon 8 Elite Gen 6 and MediaTek's Dimensity 9600 are also expected to utilize the new node.

Samsung is not sitting idle. The electronics giant recently debuted its own 2nm mobile chip, the Exynos 2600. It uses Gate-All-Around (GAA) architecture and delivers major generative AI gains, but it appears likely to power Samsung's own Galaxy lineup rather than draw business away from TSMC.

This spike in silicon costs puts smartphone makers in a tough spot. Memory prices are also climbing, a factor analysts recently warned could drag down global shipments in 2026. With the bill of materials rising on multiple fronts, consumers will likely feel the impact when the next wave of flagship phones hits shelves.

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