TSMC has announced a breakthrough chip fabrication technology, with reduced node size, increased performance and better power management — all of which should ultimately lead to faster iPhones and Macs.

With every new production process, TSMC reduces the node size allowing for more transistors on a processor. This ultimately allows for improved performance and reduced power consumption on newer chips.

TSMC's recently announced A16 node process will feature significant upgrades compared to the N2P 2-nanometer process node. Relative to the N2P process, we can expect an increase in speed of around 8 percent to 10 percent at the same voltage and chip surface area, paired with a reduction in power consumption of 15 to 20 percent.

The key feature of TSMC's A16 chip manufacturing process is its introduction of Super Power Rail (SPR) technology, which will increase transistor density and power delivery. The Super Power Rail is TSMC's implementation of backside power delivery architecture, where power rails are moved to the back of the chip, allowing for additional signal rails on the front.

Although other companies, such as Intel and Imec, have explored backside power networks in the past, TSMC's Super Power Rail is said to be more complex and efficient than previous implementations.

TSMC indicated that the new A16 chip manufacturing technology was of significant interest to AI companies. Given Apple's recent interest in AI, and the company's reliance on TSMC for its chips, we should see the new production process in future Apple-designed chips.

What does this mean for Apple and future iPhones?

Apple products are usually the first devices to receive chips with TSMC's new production processes. As the company has an established business relationship with TSMC, this pattern is unlikely to change anytime soon.

We could see the iPhone make the switch to 2nm technology in 2026, with the release of the iPhone 18 range. While TSMC's 1.6nm technology is expected to make its debut the same year, it will likely not see use in actual products until 2027.

According to a January 2024 report, Apple will be among the first to use TSMC's 2nm process for its products. TSMC is expected to begin production of chips with a 2-nanometer manufacturing process in early 2025, meaning that we could only see 2nm chips in Apple's 2026 iPhone.

As for the iPhone 17 and the A19 line of chips, they are expected to continue the use of 3nm technology, albeit with a shift from N3E to the N3P production process. Relative to N3E, the N3P process is said to feature an increase in performance of 5 percent, with a 5 to 10 percent reduction in power consumption.

What we know about the iPhone 16 and the A18 chip

Apple's iPhone 16 is expected to launch in September of 2024, and it may feature the A18 chip across the board. This has been claimed by multiple sources, with the change even being referenced in early iOS 18 code.

The A18 chip expected to arrive in the iPhone 16 family is likely to feature the N3E production process. TSMC's s N3E process is said to have improved performance relative to the earlier N3B process used for the A17 Pro chip, although both are 3-nanometer processes.

The A18 system-on-chip, known by the identifier t8140 and codename Tahiti, is rumored to feature six GPU cores, but may feature an improved neural engine. The neural engine is allegedly being improved to facilitate the use of Apple's on-device AI technology.

Although the iPhone is generally the first device to receive new chip technology from TSMC, Apple takes great care to ensure that the chip technology becomes standardized across all of its flagship devices.

How Apple gradually adds new chip technology to its products

Chips made with innovative production processes first make their way to the iPhone, and from there eventually trickle down to the iPad and Mac product lines.

In September of 2023, Apple introduced the iPhone 15 Pro with the A17 Pro chip, the first Apple product to utilize 3nm technology for the system-on-chip. Later that year, in October, Apple introduced new MacBook Pro models with the M3 chip, also featuring 3nm technology, an improvement compared to the previous 5nm chips.

Apple will more than likely Apply the same pattern to future product releases, with the iPhone receiving 2-nanometer chips before new iPad or Mac products. Products utilizing TSMC's 1.6nm production process will likely make their debut around iPhone 18 release time.