Beyond Tariffs: Why Apple Devices Are Getting Pricier

Rapid Summary:

• Prices of future Apple devices might increase, partially due to the adoption of more expensive chip manufacturing processes.
• Apple plans to use TSMC’s advanced 2nm technology in its chips for devices launching next year. The cost of a 2nm wafer is $30,000 compared to $18,000 for 3nm chips.
• TSMC aims to mass-produce 2nm chips in 2025; Apple has consistently adopted new technology early but may work on absorbing costs without promptly passing them onto customers.
• Alternatives include sticking with second-generation 3nm process, which has lesser performance improvements (15-25%) compared to transitioning directly to GAAFET-based transistors used in the new process.
• Improved transistor density and power efficiency are expected from the switch to 2nm chips. Apple’s upcoming M6 and A20 Pro processors are anticipated as their first implementation using this tech by next year or later into production cycles.
• Other companies like Qualcomm and MediaTek are exploring strategies around managing these cost increases.

Indian Opinion Analysis:
The technological advancements represented by TSMC’s transition from FinFET transistors toward GAAFET-based designs may define industry competitiveness over the coming years. While exciting progress could set benchmarks globally via production-dense semiconductors backed Computing range possibilities both performative shifts retention ensured full device circuits scaling continuous+effecient