Next year’s iPhone 17 series is set to feature processors made using TSMC’s enhanced N3P 3-nanometer chip technology. However, the introduction of the next-generation 2nm processors is expected to wait until the iPhone 18 Pro models in 2026, primarily due to cost concerns, as noted by Apple analyst Ming-Chi Kuo. The “3nm” and “2nm” designations refer to generations of chip manufacturing technology, with each successive generation typically indicating smaller transistor sizes. Smaller transistors facilitate the packing of more components onto a single chip, which enhances processing speed and increases power efficiency.
Last year, Apple transitioned to 3-nanometer chips for its iPhones and Macs, incorporating the A17 Pro chip in the iPhone 15 Pro models and the M3 series chips in Macs, both built on the 3nm node. This represented a significant upgrade from the previous 5nm node. This year, the iPhone 16 series utilized the A18 chip, constructed with a second-generation 3-nanometer process, which showcases improved efficiency and speed compared to the A16 Bionic chip found in the iPhone 15 models. TSMC is anticipated to begin manufacturing 2nm chips by late 2025, with Apple likely being the first company to obtain chips from this new process.
To support this venture, TSMC is investing in the construction of two new facilities and is seeking approval for a third. As TSMC’s largest customer, Apple usually receives priority access to the latest chip technology. For example, in 2023, Apple acquired all of TSMC’s initial 3-nanometer chip production for its devices. This advantageous partnership allows Apple to integrate cutting-edge semiconductor technology into its products ahead of its competitors.
In the interim between 3nm and 2nm nodes, TSMC is also planning to introduce several improved 3nm variants. Already available are N3E and N3P chips, with developments underway for N3X, aimed at high-performance computing, and N3AE, designed for automotive applications.
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