Apple’s next generation of chips just got significantly more expensive to make and that cost increase could eventually land in your wallet. Reports indicate TSMC’s 2nm process, expected to power the A20 series for iPhone 18 and future M-series Mac chips, costs roughly $30,000 per wafer compared to $18,000–20,000 for current 3nm wafers. That’s a meaningful jump in Apple’s manufacturing costs before a single phone leaves the factory.
It’s not just the chip node. Apple’s growing investment in on-device AI capabilities demands more powerful neural engines and increased memory both adding to component costs. Geopolitical tensions and potential tariffs on electronics manufacturing add another layer of pressure that analysts are watching closely.
Products potentially affected include the iPhone 18 series expected in 2027, future MacBook Pro models running M6 or later chips, next-generation iPads, and other premium Apple hardware built on these advanced nodes.
Apple hasn’t confirmed any price increases; this remains analyst speculation based on supply-chain reporting. Historically, Apple has absorbed cost increases rather than passing them directly to consumers, and some analysts believe the company may instead raise prices only on higher-end models, keep entry-level pricing stable, or offset costs through larger storage tiers and additional AI features rather than blunt price hikes.
Nothing is confirmed yet. But if you’ve been planning to upgrade to the iPhone 18 in 2027, keep an eye on Apple’s pricing strategy as that 2nm transition gets closer and the chip costs are real, even if the consumer impact isn’t decided.
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