iPhone 18’s Costly 2nm Process Adoption Could Lead to Price Hikes

Apple’s iPhone 18 models will adopt TSMC’s 2nm manufacturing process for the next-generation A20 chip, which will bring substantial performance and power efficiency improvements to next year’s iPhones, but it may also incur significantly more costs that Apple could pass onto the customer.

The latest corroboration that Apple will use TSMC’s 2nm process in next year’s iPhone models comes from Weibo-based leaker Digital Chat Station, who has sources in the Chinese supply chain. Industry analysts Ming-Chi Kuo and Jeff Pu have previously claimed as much, so it seems all but confirmed that Apple will adopt the more advanced silicon wafer technology.

In 2023, Apple adopted 3nm chips for its iPhones and Macs, an upgrade over the prior 5nm mode. The switch to 3nm technology brought 20 percent faster GPU speeds, 10 percent faster CPU speed, and a 2x faster Neural Engine to the iPhone, and similar improvements on Macs. The upcoming iPhone 17 series is expected to feature processors made using TSMC’s N3P chip technology – an enhanced version of the 3nm process – but 2nm adoption in the iPhone 18 is expected to bring significantly more performance and efficiency gains.

The terms “3nm” and “2nm” describe generations of chip manufacturing technology, each with its own set of design rules and architecture. As these numbers decrease, they generally indicate smaller transistor sizes. Smaller transistors allow more to be packed onto a single chip, typically resulting in increased processing speed and improved power efficiency.

TSMC plans to start manufacturing 2nm chips in late 2025, and Apple is expected to be the first company to receive chips built on the new process. TSMC is building two new facilities to accommodate 2nm chip production, and working on approval for a third. TSMC generally builds new fabs when it needs to increase production capacity to handle significant orders for chips, and TSMC is expanding in a major way for 2nm technology.

However, with Apple expected to be the first major beneficiary of the new process, it is also likely to face significantly increased costs, which could see the iPhone 18 face another round of price hikes on top of possible price increases on this year’s iPhone 17 models due to U.S. import tariffs. Apple scored a reprieve from the 145 percent tariff impacting goods imported from China and the 10 percent tariff on goods imported from other countries, but it doesn’t sound like that’s going to last.

U.S. President Donald Trump is currently working on new semiconductor levies that will likely impact all Apple devices. Trump earlier this week said that no one is “getting off the hook” and there “was no tariff exception.” Apple and other tech companies are “just moving to a different tariff bucket,” with the 20 percent “Fentanyl Tariffs” still in place, and additional tariffs coming.

iPhone 17 Pro Launching Later This Year With These 12 New Features

While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone …

Apple’s 20th Anniversary iPhone May Finally Go All Screen

Tuesday April 15, 2025 6:31 am PDT by Tim Hardwick

Apple is preparing a “bold” new iPhone Pro model for the iPhone’s 20th anniversary in 2027, according to Bloomberg’s Mark Gurman. As part of what’s being described as a “major shake-up,” Apple is said to be developing a design that makes more extensive use of glass – and this could point directly to the display itself. Here’s the case for Apple releasing a truly all-screen iPhone with no…

iOS 19 Will Add These New Features to Your iPhone

The first iOS 19 beta is less than two months away, and there are already a handful of new features that are expected with the update. Apple should release the first iOS 19 beta to developers immediately following the WWDC 2025 keynote, which is scheduled for Monday, June 9. Following beta testing, the update should be released to the general public in September. Below, we recap the key…

Apple Releases Wireless CarPlay Fix

Wednesday April 16, 2025 11:28 am PDT by Joe Rossignol

If you have been experiencing issues with wireless CarPlay in your vehicle lately, it was likely due to a software bug that has now been fixed. Apple released iOS 18.4.1 today, and the update’s release notes say it “addresses a rare issue that prevents wireless CarPlay connection in certain vehicles.” If wireless CarPlay was acting up for you, updating your iPhone to iOS 18.4.1 should…

10 Products Still Coming From Apple in 2025

Friday April 11, 2025 4:14 pm PDT by Juli Clover

Apple may have updated several iPads and Macs late last year and early this year, but there are still multiple new devices that we’re looking forward to seeing in 2025. Most will come in September or October, but there could be a few surprises before then. We’ve rounded up a list of everything that we’re still waiting to see from Apple in 2025. iPhone 17, 17 Air, and 17 Pro – We get…

Foldable iPhone Resolutions Leak With Under-Screen Camera Tipped

Monday April 14, 2025 3:12 am PDT by Tim Hardwick

Apple’s upcoming foldable iPhone (or “iPhone Fold”) will feature two screens as part of its book-style design, and a Chinese leaker claims to know the resolutions for both of them. According to the Weibo-based account Digital Chat Station, the inner display, which is approximately 7.76 inches, will use a 2,713 x 1,920 resolution and feature “under-screen camera technology.” Meanwhile, the…

Apple Releases iOS 18.4.1 With Bug Fixes

Wednesday April 16, 2025 10:11 am PDT by Juli Clover

Apple today released iOS 18.4.1 and iPadOS 18.4.1, minor updates to the iOS 18 and iPadOS 18 operating systems that came out last September. iOS 18.4.1 and iPadOS 18.4.1 come two weeks after the launch of iOS 18.4 and iPadOS 18.4. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. There have been complaints about …

An Apple Store in the UK is Permanently Closing Later This Year

Apple has confirmed that it will be permanently closing its retail store in the heart of Bristol, England, and there is no replacement in sight. Apple Bristol in 2023 Apple Bristol will be closing its doors on Saturday, August 9, due to redevelopment plans at the Cabot Circus Shopping Centre, and the adjacent Bristol Shopping Quarter. According to news reports, and a building application, the …

Apple Says These Products Are Now Vintage

Tuesday April 15, 2025 9:53 am PDT by Juli Clover

Apple today updated its vintage products list to add the 2018 Mac mini and the iPhone 6s, devices that will get more limited service and repairs now that they are considered vintage. The iPhone 6s initially launched in 2015, but Apple kept it around as a low-cost device until 2018, which is why it is only now being added to the vintage list. The iPhone 6s had Apple’s A9 chip, and it was…