TSMC to establish a dedicated production line for the iPhone 18's Advanced A20 Chip
Apple plans to use TSMC's next-generation 2nm process technology in the iPhone 18 series which will be combined with advanced WMCM (wafer-level multi-chip module) packaging methods. As the world's leading pure-play foundry, TSMC has established a dedicated production line for Apple, which is expected to be put into mass production in 2026. So next year's iPhone 18 will use TSMC's next-generation 2-nanometer fabrication process in combination with an advanced new packaging method. According to reports, Apple's A20 chip in iPhone 18 models will switch from the previous InFo (Integrated Fan-Out) packaging to WMCM (Wafer-Level Multi-Chip Module) packaging. Technically, the differences between the two packaging methods are quite striking.
From a technical point of view, there are significant differences between the two packaging methods. WMCM packaging technology excels in multi-chip integration. It can tightly integrate complex systems such as CPU, GPU, DRAM and other customized accelerators (such as AI/ML chips) in one package, providing greater flexibility. It provides greater flexibility in arranging different chips. Different types of chips can be stacked vertically or placed side by side in the package and the communication between them can be optimized. Whereas, InFo packaging technology allows components such as memory to be integrated within the package, but it mainly focuses on single-chip packaging, usually attaching the memory to the main system chip (SoC), such as placing DRAM above or near the CPU and GPU cores. This packaging method aims to reduce the size of a single chip and improve its performance. InFo allows integration of components, including memory, within the package but focuses more on single-die packaging where memory is typically attached to the main SoC (such as DRAM placed on top or near the CPU and GPU cores). It's optimized for reducing the size and improving the performance of individual chips.
TSMC plans to start producing 2-nanometer chips by the end of 2025, and Apple is expected to become the first company to get chips based on this new process. TSMC usually builds new factories when it needs to increase production capacity to meet major chip orders. TSMC is currently vigorously promoting the capacity expansion of 2-nanometer technology. To serve its major client Apple, TSMC has established a dedicated production line at its Chiayi P1 fab, where WMCM packaging monthly capacity is expected to reach 10,000 units by 2026. According to Apple analyst Ming-Chi Kuo, only "Pro" models in the iPhone 18 series are likely to use TSMC's next-generation 2nm processor technology because of cost concerns. Kuo also believes that the iPhone 18 Pro will feature 12GB of RAM as a result of the new packaging method.
Terms like "3nm" and "2nm" describe generations of chip manufacturing technology, each with its own set of design rules and architecture. As these numbers decrease, they generally indicate smaller transistor sizes. Smaller transistors allow more to be packed onto a single chip, typically resulting in increased processing speed and improved power efficiency. Last year's iPhone 16 series is based on an A18 chip design built using a second-generation "N3E" 3nm process. Meanwhile, this year's upcoming iPhone 17 line up is expected to use A19 chip technology which is likely built on an upgraded 3-nanometer process called "N3P." Compared to earlier versions of 3nm chips, the N3P chips offer increased performance efficiency and increased transistor density for the user's.
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