Ben Bajarin, CEO and Chief Analyst of Creative Strategies, pointed out that Apple’s A-series smartphone processors have evolved from the A7 (28nm process) in 2013 to the A18 Pro (3nm process) in 2024, with a significant leap in transistor count from 1 billion to 20 billion. This technological advancement has not only brought performance improvements but also come with a notable increase in manufacturing costs.
Bajarin noted that as process technology continues to advance, the cost per wafer charged by TSMC to Apple has steadily risen. For example, the cost of a 28nm A7 processor wafer was around $5,000, while the cost of wafers for the 3nm A17 and A18 series processors has risen to $18,000, more than tripling.
Although the pace of increase in transistor density has slowed in recent years, production costs have surged. The cost per square millimeter has increased from $0.07 for the A7 to $0.25 for the A17 and A18 Pro. This reflects the complexity of advanced process technologies and the high costs of research and development.
Additionally, TSMC plans to adjust the prices of 3nm, 5nm process and CoWoS packaging technologies starting in January 2025, with price hikes ranging from 5% to 20%. At the same time, TSMC expects to begin mass production of 2nm chips in the second half of the year, with Apple, Nvidia, Qualcomm, and others as major customers. However, Korean media reports that due to limited 2nm production capacity, major customers may consider shifting orders to Samsung.
Disclaimer:
- This channel does not make any representations or warranties regarding the availability, accuracy, timeliness, effectiveness, or completeness of any information posted. It hereby disclaims any liability or consequences arising from the use of the information.
- This channel is non-commercial and non-profit. The re-posted content does not signify endorsement of its views or responsibility for its authenticity. It does not intend to constitute any other guidance. This channel is not liable for any inaccuracies or errors in the re-posted or published information, directly or indirectly.
- Some data, materials, text, images, etc., used in this channel are sourced from the internet, and all reposts are duly credited to their sources. If you discover any work that infringes on your intellectual property rights or personal legal interests, please contact us, and we will promptly modify or remove it.
