Apple Defines Future Chip Plans for iPhones: Conservative Choices to Cut Costs

The new N2P node from TSMC is set to become an absolute reference for the industry in the coming months. N2P will be used by Qualcomm and MediaTek for next-generation 2nm chips, while Apple will use N2 for the A20 and A20 Pro, which is a less advanced version. However, the Cupertino company plans to switch to N2P next year.

Plans for A21 Pro

As clarified in a new report, the A21 Pro chip will be used in iPhones arriving in 2027, particularly in the high-end variants, including the twentieth anniversary iPhone. While the A20 Pro will utilize the N2 node, the future A21 Pro will transition to N2P, which will provide a quality leap in performance without departing from the 2nm process. Apple will continue to use the N2 node for its A21, the lower-tier chip that will be used in models like the iPhone 19. This choice will ensure cost reductions.

This is a crucial aspect for Apple’s "non-Pro" smartphones, which must contend with the memory crisis and a substantial increase in costs.

The Future is 1.4nm

In the near future, Apple will continue to rely on TSMC but will switch to the 1.4nm manufacturing process that will be used for the A22 Pro chip, set to be released in the second half of 2028. Again, A22 might resort to a less advanced node to keep production costs down.

The issue of component costs and margins is fundamental for the future of Apple. The company is preparing to increase prices due to the memory crisis.