Apple has already initiated its planning for the A20 chip, which is slated for inclusion in its iPhone 18 series in 2026. This cutting-edge chip is projected to be the first processor to leverage TSMC's 2-nanometer manufacturing process, with an anticipated cost of around $280 per unit. The adoption of the 2-nanometer technology is expected to bring about substantial advancements in both performance and energy efficiency. Moreover, it will pave the way for the development of the M6 series Mac chips.

However, this technological leap forward comes with a price increase. The unit cost of TSMC's 2-nanometer process has surged by 50% compared to its 3-nanometer predecessor. As a result, the costs associated with Apple's A18, A19, and A20 chips are on an upward trajectory, with the A20 chip potentially emerging as the most expensive component in the iPhone lineup, surpassing even the camera module in terms of cost.

In response to these cost pressures, Apple may need to rethink its strategy. One possible approach is to incorporate the A20 chip exclusively in high-end models such as the iPhone 18 Pro and Pro Max. Meanwhile, the standard version of the iPhone 18 could utilize lower-cost chips to strike a balance between innovation and market competitiveness.