Apple's A20 Chip Could Be Massively More Expensive

[bayportbob]

is the math realistic for the N2 product? that is a huge increase in price. with what performance increase to justify that huge price jump? sounds like a shark jumping competition gonna be happening with iPhone next year...

 

[neutrino17]

I wouldn’t read too much into this. Semiconductor manufacturing is a very complex world. This may be a useful signal for customers like Apple but probably doesn’t carry long term consequences. Let’s see if they are still talking this way in a year or two.

 

[Rafagon]

Segment the product line. 6 Iphones with the upper-tier Pro models having the A20 Pro chip, 2 using the regular, and 2 the cut-down chip. People who want the finest chip in the industry need to pay, no such thing as a free lunch.

Sure, to pay for our phones, but not also to subsidize yours.

 

[gmnygts]

"placed the cost of the A18 chip at around $45"

That's not necessarily how the math works.

Does A18 "chip" refer to the PACKAGE (which includes, among other things, the DRAM, the packaging itself, and various non-sexy but essential items on the package like lotsa capacitors) as opposed to just the SoC chip?
It probably does. And all those other items don't go up in price, or at least go up on a different sort of schedule.

break it down or build it up... I'm just playing with the few, scant details (notably, the at least 50% higher) in the write-up. TSMC has reportedly told customers, presumably including Apple, to expect pricing that is at least 50% higher than 3-nanometer processors. And ---A report from DigiTimes last year placed the cost of the A18 chip at around $45, ...

 

[gmnygts]

"placed the cost of the A18 chip at around $45"

That's not necessarily how the math works.

Does A18 "chip" refer to the PACKAGE (which includes, among other things, the DRAM, the packaging itself, and various non-sexy but essential items on the package like lotsa capacitors) as opposed to just the SoC chip?
It probably does. And all those other items don't go up in price, or at least go up on a different sort of schedule.

One other thing, to speculate about the "PACKAGE" and cost is nonsensical. For its current SoCs, Apple uses Integrated Fan-Out (InFO) packaging, where the memory is typically attached near the processor via a silicon interposer. Apple is expected to use WMCM packaging for its 2N --Wafer-Level Multi-Chip Module is an advanced packaging method for integrating multiple chips, such as the CPU, GPU, and DRAM, directly onto a single wafer. To guess the eventual cost of this new packaging technology is wildly speculative right now.

https://en.eeworld.com.cn/news/xfdz/eic699098.html

 

[ChrisA]

We all know Moore's first law. But his 2nd law was "that the capital cost of a semiconductor fabrication plant also increases exponentially over time."

He went on to say that this fact proves that computer chips can not continue improving because at some point there will literally not be enough money on Earth to pay for the next plant.

What he meant was that while the first law means that the technology will get a ot better over time, the second law sys the process will come to an end when we can not afford to build the next fab.

I think the end is in sight.

 

[turbineseaplane]

He went on to say that this fact proves that computer chips can not continue improving because at some point there will literally not be enough money on Earth to pay for the next plant.

Sounds like the AI trajectory to me 😂

 

[mdriftmeyer]

Bla bla, Apple has multiyear agreements with all its key suppliers in place, incl TSMC. Will the new process be more expensive, yes. Massively? No
That's just a click bait title...

It's all about those clicks.

 

[Xade]

The prices are already ridiculous. I don't have to buy it.

 

[Chidoro]

Would anyone really and truly care if iPhone and new Mac releases went to every two years? This growth strat is just for Apple's stock price and their marketing departments to convince you of "THIS REALLY IS AN UPGRADE"

Not everyone is on the same upgrade cycle as you. Annual improvements are fine, not sure why this is such a rub to some

 

[svish]

Hopefully there won't be a price increase next year. Think it is also the reason why the base 18 is not launching next year. The foldable will definitely be at least $1999.

 

[foobarbaz]

TSMC has reportedly told customers, presumably including Apple, to expect pricing that is at least 50% higher than 3-nanometer processors.

The report further states that suppliers expect flagship mobile chips built on the 2-nanometer process to carry unit prices around $280 once volume production begins.

A report from DigiTimes last year placed the cost of the A18 chip at around $45

Logically, (at least) one of these numbers must be way off.
Adding 50% to $45 does not result in $280.

 

[frozencarbonite]

*Sigh*...remember when iPhones didn't increase in price every year?

 

[name99]

*Sigh*...remember when iPhones didn't increase in price every year?

They don't. UNLESS you want a better tier...
See those flat lines. Yeah...
And if you look at inflation adjusted prices, there's a decrease (2nd graph).

From

iPhone pricing inflation adjusted history

All the iPhone variants, models and generations graphed and adjusted for inflation and discussion of pricing power over a multi-year year period

asymco.com

 

[gmnygts]

This article might shed more light on what we are all guessing at:

https://en.eeworld.com.cn/news/xfdz/eic711527.html

 

[name99]

This article might shed more light on what we are all guessing at:

https://en.eeworld.com.cn/news/xfdz/eic711527.html

$45 to $150 to $280?
And we're supposed to take this seriously?
Give me a break!

 

[samirsushah]

New tactic to bring down Apple below October 30. Now it is that iPhone 18's A20 chip would be too costly as it is a 2nm chip and hence iPhone 18s will be too costly. I am sure that Apple will rise above all this negativity. Apple has successfully shipped Apple's AI servers to Apple's AI data-centres.