A20 Pro is Apple’s first 2nm iPhone chip, touting better heat control and on-device AI
Speakers
Katie Tarasov
— CNBC Reporter
Summary
CNBC's Katie Tarasov reports from Apple Park on Apple's new A20 Pro processor for the folding iPhone Duo and iPhone 18 Pro line, built on TSMC's first high-volume 2nm node, plus the new C2 in-house modem that reduces reliance on Qualcomm. The report highlights global memory shortages and TSMC capacity constraints that are expected to keep Apple's new devices supply constrained into next year.
- Apple unveils the A20 Pro SoC for the folding iPhone Duo and iPhone 18 Pro/Pro Max, the first high-volume smartphone chip on TSMC 2nm.
- A20 Pro claims 35% higher sustained performance, a 20% faster CPU, 40% faster GPU, and 50% higher memory bandwidth.
- On-device AI and dual-display animations are central to Apple's silicon, hardware, and software integration.
- Global memory shortage and TSMC 2nm capacity constraints are expected to keep supply tight into next year.
- Apple's C2 modem reduces reliance on Qualcomm and adds US 5G millimeter-wave support with lower energy use.
- TSMC's Arizona fabs make some older iPhone chips, while 2nm production remains Taiwan-only.
- Apple Watch Series 12 gets a new S11 chip for improved always-on processing and Apple Intelligence features.
Ideas
Apple's A20 Pro and C2 drive demand.
Apple's new A20 Pro processor and in-house C2 modem strengthen the iPhone Duo and iPhone 18 Pro line, with the A20 Pro built on TSMC's first high-volume 2nm node and optimized for on-device AI; the new devices are expected to do well but remain highly supply constrained into next year.
Memory shortage benefits SK hynix, Samsung, Micron.
Apple increased A20 Pro memory bandwidth by 50% and redesigned memory packaging while a global memory shortage and capacity constraints leave the biggest players struggling to secure memory supply from SK hynix, Samsung, and Micron, supporting memory demand and pricing.
TSMC leads 2nm smartphone chip manufacturing.
TSMC is making Apple's A20 Pro on its most advanced 2nm node, the first high-volume smartphone processor on 2nm, and that leading-edge capacity is only available in Taiwan, reinforcing TSMC's critical position amid capacity constraints.
Apple C2 modem displaces Qualcomm.
Apple's new C2 modem connects the iPhone to 5G without relying on Qualcomm, continuing Apple's push to reduce reliance on the longtime modem leader and threatening Qualcomm's Apple-related modem revenue.
