Companies such as Samsung and TSMC are in a competitive race to develop 2nm processors, with TSMC appearing to be ahead in the game. The anticipation is that the iPhone 18 may become the first device to feature this cutting-edge technology. The fundamental principle behind the advancement of processor technology is that smaller processes lead to enhanced chip performance. Chips designed with smaller processes can accommodate more transistors, resulting in increased density.

This innovation significantly minimizes the energy required for electrons to move between transistors, enhancing efficiency. In recent years, the standard for high-performance chips was set at 7nm, but we are now on the verge of entering the era of 2nm processors. The transition from 3nm to 2nm may seem minor in terms of measurements, as we are discussing nano-scale distances, yet the performance improvements are substantial. Apple aims to capitalize on this technology by ensuring that next year’s iPhone leads the charge into this new realm of processing power.

TSMC is expected to start manufacturing 2nm chips as early as late 2025, and reports suggest that Apple has secured an agreement to utilize this technology for the Apple A20 chip, which will power the iPhone 18. Should this become reality, the potential power of the iPhone 18 could be groundbreaking. Given Apple’s history of producing powerful smartphones, a 2nm chip could elevate the iPhone 18 to an unmatched level. Additionally, this extra processing power is likely to be beneficial for AI applications; however, the impact on everyday user experience may not be dramatically noticeable, as current iPhones already provide a seamless performance.

Moreover, Apple is expected to transition from Integrated Fan-Out (InFo) packaging to Wafer-Level Multi-Chip Module (WMCM) packaging technology. This switch will enhance both performance and efficiency, positioning the iPhone 18 in a completely different league upon its release next year.