In a nutshell: Apple is on track to become the first handset maker to ship a smartphone powered by processing hardware based on TSMC’s 2nm process. The chip, tentatively referred to as the A20, will also reportedly utilize the latest wafer-level multi-chip module (WMCM) packaging technology.

Sources familiar with the matter tell the Commercial Times that production of the A20 SoC will begin at the Chiayi AP7 plant in Taiwan. The current generation iPhone 16 utilizes the A18 SoC, and the iPhone 17 due out this fall will be powered by the A19. According to the publication, the A20 will be reserved for the higher-end iPhone 18 Pro Max as well as the long-rumored foldable iPhone.

WMCM is a packaging technology in which multiple components, like the CPU, GPU, and memory, are integrated into a single package at the wafer level. According to Patently Apple, this allows for greater flexibility in combining various components while still maintaining a compact footprint. Ultimately, this should enable Apple to create chips with improved performance, better thermal management, and enhanced battery life.

Earlier reports on the A20 suggest the chip will be up to 15 percent faster than the upcoming A19, but have the same level of power consumption. Optionally, Apple could tweak the formula to achieve even better efficiency while maintaining performance in line with the A19. Combined with other advancements like silicon-carbon batteries, runtimes could see a big jump.

Insiders claim TSMC is targeting a production goal of 50,000 units per month by the end of 2026. Meeting demand could be a struggle at that rate, but it will all depend on how soon Apple and TSMC can get production lines rolling and how much inventory they can build up before the launch of the iPhone 18 series and the new foldable.

Apple’s first flexible-screen iPhone is expected to feature a 7.8-inch inner display, a 5.5-inch outer screen, and include Face ID authentication tech. Rumors put the price tag at anywhere between $2,000 and $2,500.