• Source:JND
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Apple's 2026 iPhone series could be pricier in India, and not entirely due to Apple. The world's leading chipmaker, Taiwan Semiconductor Manufacturing Company, is increasing the prices of its next-generation process nodes, including the ultra-advanced 2-nanometre technology that will power the iPhone 18 Pro.

Industry reports and a leak on the Korean platform Naver have stated that TSMC has been informing clients of plans for a 3-10% hike in sub-5nm chip production, starting in 2026. The 2nm process boasts a far more complex "gate-all-around" transistor design, a configuration that brings considerable efficiency improvements but substantially higher manufacturing costs.

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Timing-wise, this is essential for Apple. The A20 Bionic chip, anticipated to be in the iPhone 18 Pro and iPhone 18 Pro Max, will be fabricated using the 2nm process. Given that the wafer cost may jump by more than 50% from today's 3nm process, Apple may have to pay substantially more to produce each high-end chip.

Getting to 2 nm requires upgraded fabs, new tools, and extreme precision – all adding to slow early yields and fewer functional chips per wafer. TSMC is also building out new facilities in Taiwan and the US, costing tens of billions of dollars, costs passed to clients. As the dominant supplier of advanced chips, TSMC sets the global pricing standard.

Historically, Apple has reserved next-gen chips for premium models only to avoid massive price increases. When the 3nm A17 launched in 2023, only Pro models received it, while standard models stuck with older chips. Analysts expect the same approach:

-iPhone 18 Pro / Pro Max – A20 (2nm)

-iPhone 18 / iPhone 18 Air – A19 (3nm)

This strategy spreads out the cost but doesn’t eliminate it. If TSMC’s prices keep rising, Apple may need to hike retail prices or reduce margins.

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For Indian buyers, who already incur high costs due to import duties and logistics, the impact may be a little more pronounced. Pro models with fresh silicon will be particularly hit. Final pricing, of course, will depend upon Apple's contracts with TSMC. One thing is certain: 2nm chips bring power – and probably higher prices for the next iPhone.

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