Next year’s iPhone 17 series phones will feature processors made by TSMC using advanced N3P technology, while the older iPhone 18 Pro models expected in 2026 will feature chips likely based on next-generation 2nm technology. Their limited presence is due to cost concerns, says analyst Ming-Chi Kuo.
Image source: apple.com
Since last year, Apple processors for iPhone and Mac have been manufactured using 3 nm technology – we are talking about A17 Pro chips in the iPhone 15 Pro and M3 models for Mac; Before that, Apple processors were produced using 5 nm technology. This year, iPhone 16 received A18 processors based on second-generation 3 nm technology – they are faster and more efficient than the A16 Bionic in the base iPhone 15 models.
TSMC plans to begin production of 2nm chips in late 2025, and Apple is expected to be the first customer to receive processors made using the new process. The Taiwanese contractor is already building two new factories to accommodate 2nm processor production and is awaiting approval for a third – the company usually builds new plants when it needs to increase production capacity to handle large orders, and TSMC is expanding significantly in anticipation of the launch of new processes.
TSMC is pouring billions into this new semiconductor manufacturing technology, and Apple will have to adapt its chip designs accordingly. As the Taiwanese contractor’s largest client, the American company traditionally receives priority access to the latest technology. So, in 2023, it bought out all of TSMC’s 3nm capacity for its iPhone, iPad and Mac. This partnership helps Apple introduce cutting-edge technologies before competitors. Between the launches of the 3 and 2 nm generations, TSMC is deploying several intermediate solutions: the company has already launched the production of semiconductors using N3E and N3P technologies, which are improvements to the basic 3 nm solution. In development are N3X for the high-performance computing segment and N3AE for the automotive industry.