Apple is gearing up for its next generation of hardware, but new reports suggest the highly anticipated Apple A20 chip will come with a significantly higher price tag for the company. This development could have a major impact on the final price of future iPhones.

Why is the Apple A20 Chip Facing a Record Price?

According to industry reports from Taiwan, the unit cost for the new chip could reach as high as $280. This figure represents a staggering 80% increase compared to the A19 chip, which is expected to power the iPhone 17 series. The primary drivers behind this price hike are inflation in the memory market and TSMC’s substantial investments in new manufacturing technologies.

Furthermore, TSMC is employing its N2P production process, which utilizes first-generation nanosheet transistor technology. This method, also known as Gate-All-Around (GAA), provides superior control by having gates that surround the channel. As a result, it boosts logic density by 1.2 times, pushing performance to new heights.

A Major Shift in Packaging Technology

With this new chip, Apple is also transitioning from InFO packaging to Wafer-Level Multi-Chip Module (WMCM) technology. While the older method integrates all components onto a single die, the WMCM technology combines parts like the CPU and GPU on separate dies. This approach gives Apple greater flexibility in utilizing different core structures.

This new packaging technology also enhances efficiency by allowing each die to draw power according to its specific needs, which reduces overall energy consumption. Additionally, the use of Molding Underfill (MUF) in production helps prevent material waste. The chip’s graphics unit will also feature a third-generation Dynamic Caching capability, which manages memory based on the workload.

So, what are your thoughts on the Apple A20 chip? Share your opinions with us in the comments!