Apple Inc.'s (NASDAQ:AAPL) upcoming iPhone 18 lineup is expected to feature Taiwan Semiconductor Mfg. Co. Ltd.'s (NYSE:TSM) 2nm A20 chip, according to a top supply chain analyst.
What Happened: On Saturday, Ming-Chi Kuo, reiterated his previous forecast that the A20 chip, set to power the iPhone 18 series in the second half of 2026 will be manufactured using TSMC's 2-nanometer process.
"Reiterating my prediction from six months ago: the 2H26 new iPhones (iPhone 18) will be powered by TSMC's 2nm chips," he said in a post on X. "TSMC's 2nm R&D trial yields reached 60–70% three months ago, and they're now well above that."
See Also: Taiwan Semiconductor Could Be The Lifeline Intel Needs As Rumors Swirl Of A US-Backed Joint Venture
Jeff Pu, another well-known analyst, previously echoed Kuo's predictions, and a rumor that the A20 chip would stick to a 3nm process has since been retracted.
Why It's Important: The A20 chip marks Apple's shift to TSMC's N2 process, succeeding the A19 chip, which is expected to use TSMC's third-generation 3nm process (N3P) in iPhone 17.
According to industry estimates, the A20 could offer up to 15% faster speeds and up to 30% better energy efficiency compared to the A19.
Earlier, in July 2024, reports indicated that Apple had to delay the use of TSMC’s 2nm chip for the iPhone 17 due to production delays.
However, now TSMC has been making strides in its chip manufacturing capabilities. In January 2025, the company reported steady progress in its 2nm chip production in Taiwan, with plans to commercialize 4nm chips at its Arizona facility.
Price Action: TSMC's stock rose 0.98% in pre-market trading on Monday, reaching $178.47. On Friday, it closed at $176.73, reflecting a 0.42% decline during regular trading hours, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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