Apple's A20 Chip: 2nm Transition Drives 80% Cost Increase for iPhones

• Apple's upcoming A20 chip could be its most expensive iPhone processor, costing around $280 per unit, an 80% increase over the previous generation.
• The significant cost hike is due to the transition to a 2-nanometre manufacturing process, facing challenges like fragile first-generation nanosheet yields and advanced packaging.
• The 2-nanometre process introduces gate-all-around (nanosheet) transistors, offering better power efficiency and higher density, crucial for on-device AI and battery life.
• Apple relies on TSMC for A20 production, securing early access to this leading-edge technology despite the higher initial costs.
• While Apple historically absorbs such costs, the magnitude of this 80% increase raises concerns about potential future iPhone price adjustments.

Why It Matters: Apple's A20 chip faces an 80% cost increase due to 2nm tech, potentially impacting future iPhone prices.