Apple’s iPhone 18 lineup is widely expected to facilitate the next-round A20 chip manufactured using the TSMC’s advanced 2Nm process. Although this change will promote the performance and efficiency of the upcoming iPhone 18, the cost of this technique can eventually be passed to consumers, increasing the possibility of further price hike for next year’s model. The rumors of adopting Apple’s 2Nm process have been broadcast for some time, supporting industry analysts such as Ming-Chi Kuo and Jeff Pu claims. Recently, a webo-based leaker, known as a digital chat station, resonated these reports with a relationship with China’s supply chain, further strengthened expectations for the iPhone 18.

The iPhone 18 has 2Nm chip facility

The long chip manufacturing partner of TSMC, Apple, is preparing to start the production of 2Nm chips by the end of 2025, in which Apple has secured the first place to get them. In anticipation of high demand, TSMC is building two new construction plants and demanding approval for a third.

The 2Nm process currently represents an important step from 3Nm technology used in Apple’s devices. In 2023, Apple will introduce 3Nm chips in its iphones and Mac. The upcoming iPhone 17 is expected to use the 3Nm variants (N3p) upgraded, but it is predicted to give a more performance and efficiency enhancement to a 2Nm step of iPhone 18.

For better understanding, chip construction generations such as “3Nm” and “2nm” refers to various architectural standards. As these nodes shrink, the transistors become smaller, due to which more of them fit on the same chip. It usually translates into rapid processing and low power consumption.

More reason

The 2Nm chip is one of the major reasons for the heavy price tag of iPhone 18, but this is not the only reason. Given the current political scenario, other factors will also chip. Under President Donald Trump, the United States government is chasing a new wave of tariffs targeting semi -circulators. Despite a temporary discount from 145 percent and 10 percent of tariffs on Chinese and non-China imports respectively, Apple may soon face renewed levy. Trump recently said that “anyone is getting off the hook” and technical firms including Apple are just transferring to a new “tariff bucket”, still coming with additional allegations.

As a result, a combination of next-gene chip technology and increased trade barriers can push the prices of iPhone even more-only for the iPhone 18, but also for the iPhone 17 series. Recently, Apple has also airlifted 600 tonnes of iPhones in India to defeat tariffs. He said, so far there is no confirmation on prices. Therefore, we advise you to wait for the official notification and consume related news with a pinch of salt.