Not all iPhone 18 models will use Taiwan Semi’s 2 nm chips, analyst says

Apple (NASDAQ:AAPL) may have just announced the iPhone 16, but analysts are already focusing on the next iterations of the iPhone. And one analyst says the iPhone 18 could see further bifurcation amid cost concerns.

“The processor for 2026 iPhone 18 models is anticipated to use TSMC’s 2-nanometer technology,” TF International Securities analyst Ming-Chi Kuo wrote in a post on X, referring to Taiwan Semiconductor (NYSE:TSM). “However, due to cost concerns, not all new iPhone 18 models may be equipped with a 2-nanometer processor.”

Kuo added that the processors for the iPhone 17 models will use Taiwan Semiconductor’s 2 nanometer technology.

As processors get smaller, the yield rates — or the amount of chips that are suitable for needs — become more important in decision-making. Kuo’s suggestion that rising costs of the 2 nanometer process could widen the spread between the capabilities of the iPhone 18 Pro and iPhone 18 base models.

The iPhone 16 has a 3 nanometer A18 chip, which features a 6-core CPU and a 5-core GPU.

The new iPhone 16 Pro comes with the new 3 nanometers A18 Pro chip, which has a 16-core neutral engine, powering 35T operations per second. The A18 Pro also comes with a 6-core GPU, capable of better ray tracing performance for AAA games.