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

Apple's iPhone 18 models will use TSMC's 2nm process for the A20 chip, significantly improving performance and power efficiency. This follows the iPhone 17's use of the enhanced 3nm process. Smaller transistor sizes in 2nm technology enable increased processing speed and power efficiency. TSMC is investing heavily in 2nm production, with Apple as a primary customer. The 2nm process is slated to begin production in late 2025. However, this advanced technology will likely increase production costs. Potential price increases for the iPhone 18 are anticipated due to these increased costs. New US tariffs on imported goods could further increase prices for Apple devices. President Trump's new semiconductor tariffs threaten further price hikes. Apple may face continued tariff challenges impacting all its devices.