Performance-wise, the 2025 iPhone 17 models from Apple will feature N3P chips based on TSMC’s new N3 fab process, used to manufacture 3-nanometer processors. With this new chip architecture, Apple claims better power efficiency and faster performance, leading to even more battery life and better performance on those more intense tasks. This collaboration between Apple and TSMC continues to propel technological progress; marketable attribution is the upcoming 3nm chip that will headline the iPhone 17.
When you get to 2026, the iPhone 18 is rumored to be using TSMC’s 2-nm process. Its follow-up vows to be even faster and more efficient than the 3-nanometer chip before it. The highest configuration of the A16 processor will provide an iPhone 18 that is strong in performance and consumes less power, which is equivalent to positioning the iPhone 18 in one of the most advanced smartphones on the market, strengthening Apple’s lead in processing technology.
The compromise, however, is that only a handful of iPhone 18 units might pack the 2-nanometer chip if Apple finds production costs too high. Last but not least, Apple may decide to keep this technology reserved for its Pro or even Ultra offerings with the lower-tier models running N3P (3-nanometer) chips instead. Those 2-nanometer performance benefits could nudge customers in the direction of the premium models.
Apple still has the best chip tech in the world for its phones by some distance. It should threaten those competitors who will either need to innovate or develop similar technology in order to compete. The differential cost among models could similarly push consumers to get the right combination of performance and price in future iPhone purchases.
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