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Apple’s 2nm A20 Reported to Cost About $280 Per Chip, Raising Pressure on 2026 Flagship Pricing

Supply‑chain reports attribute the jump to early 2nm yield challenges, costly GAA packaging and higher memory prices.

Overview

  • Taiwan Economic Daily News, cited by multiple outlets, pegs the A20’s unit cost near $280, roughly 80% higher than the A19 used in iPhone 17 models.
  • TSMC’s first‑generation nanosheet yields, wafer‑level and advanced GAA packaging complexity, and rising RAM prices are cited as the main cost drivers, with new N2 fabs ramping in Hsinchu and Kaohsiung.
  • Analysts say the higher silicon costs could push 2026–2027 ultra‑flagship phone prices up or lead to feature trims, a pressure expected to affect Qualcomm and MediaTek 2nm chips as well.
  • Apple has previously absorbed early‑node premiums at 5nm and 3nm, leaving uncertainty over how much of the 2nm increase will reach retail pricing.
  • Separately, unconfirmed leaks suggest the iPhone 17e will enter mass production after CES with a downclocked A19 and a Dynamic Island cutout, while under‑display Face ID for iPhone 18 Pro models remains in testing and unproven.