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Apple Expected to Launch iPhones with 2nm Chips by 2026: Report

Apple Expected to Launch iPhones with 2nm Chips by 2026: Report

  • 23.03.2025 12:12
  • iphoneincanada.ca
  • Keywords: Apple, TSMC

Apple plans to release iPhones with 2nm chips by late 2026, according to Ming-Chi Kuo. TSMC's progress on 2nm tech suggests trial production yields have improved, but cost constraints may limit the rollout to some iPhone 18 models.

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Estimated market influence

Apple

Apple

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Analyst rating: Buy

Apple is expected to launch iPhones with 2nm chips by 2026, which could boost performance and battery life.

Taiwan Semiconductor Manufacturing Company (TSMC)

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Analyst rating: N/A

TSMC is making progress with its 2nm technology, contributing to Apple's plans for the next-gen chips.

Context

Analysis of Apple's 2nm Chip Launch for iPhones

Key Facts and Timeline

  • Ming-Chi Kuo’s Prediction: Apple is expected to launch iPhones with 2nm chips by late 2026, as per analyst Ming-Chi Kuo.
  • TSMC Progress: Trial production yields for TSMC's 2nm technology reached 60–70% three months ago and have since improved significantly.
  • iPhone 18 Models: The iPhone 18 models are likely to feature Apple’s first 2nm chips, produced by TSMC, in the second half of 2026.

Business Impact and Market Implications

  • Performance Boost: The transition to 2nm chips will likely enhance performance and power efficiency, potentially improving battery life and speed for future iPhones.
  • High Production Costs: Due to elevated costs, not all iPhone 18 versions may include the 2nm chip; some could retain 3nm generation chips.

Competitive Dynamics

  • TSMC’s Role: TSMC’s steady progress with its 2nm technology is a critical factor in Apple’s timeline, reinforcing their partnership as a key supplier.
  • Industry Leadership: Apple’s move to 2nm chips positions it ahead of competitors like Samsung and Google, which are also developing advanced semiconductor technologies.

Strategic Considerations

  • Long-Term Effects: The adoption of 2nm chips could set a new benchmark in the semiconductor industry, influencing consumer expectations for device performance.
  • Regulatory Impact: Potential regulatory scrutiny may arise if Apple’s pricing strategy or market dominance is affected by its advanced chip technology.

Conclusion

Apple’s planned launch of 2nm chips in late 2026 underscores its commitment to innovation and leadership in the semiconductor space. While the move offers significant benefits, challenges such as high production costs and competition will require strategic management.