TSMC, a chip maker, has been making it known to their big clients like Apple about increases in price. yeux 1122, an aggregator and leaker, reported that TSMC has started talking to their big clients about price increases that are impending for their advanced processes for fabrication which are less than 5 nanometers like the M3-M5 and A16-A19 chips of Apple and other chips to be made in the future.
It was reported by the China Times that the A20 chip for the next iPhone lineup in 2026 could be more expensive. The A20 chip is anticipated to be the first 2-nanometer chip that is widely available premiering next year powering the iPhone 18 models.
Pricing is expected to be higher by 50% compared to 3-nanometer processors due to high expenditure for capital that is unusually high and lack of strategies for discounts. Last year DigiTimes reported that the A18 chip cost around $45 meaning it was about 10% of the BOM or bill of materials cost.
