Manufacturing bottlenecks, driven by DRAM shortages and the complexities of TSMC’s new 2 nm process, threaten to limit early availability and elevate prices for Apple’s next flagship iPhone.
Apple’s next premium iPhone cycle may be shaped as much by manufacturing constraints as by product design. Reports from Tom’s Hardware say the company is facing a severe shortage of DRAM, with about $1 billion worth of unassembled A20 Pro and C2 chips reportedly waiting for packaging because memory supply has become a bottleneck. The pressure is being driven largely by artificial intelligence infrastructure, which is absorbing vast quantities of high-bandwidth memory for data centres and cloud systems. According to the report, Apple is still expected to launch the iPhone 18 Pro range, but shipments after launch could be affected if the shortage persists.
The technical challenge is not limited to memory alone. The A20 Pro chip is expected to use TSMC’s 2 nm process, and supply-chain reports cited by MacRumors and TechSpot say Apple has secured a large share of TSMC’s early 2 nm capacity. That node is designed to improve performance and power efficiency, but it is also more expensive and more complex to produce at scale. The packaging step adds another layer of risk, because the new chip design is expected to rely on tighter integration between processor and memory, leaving less room for production workarounds if components arrive out of sequence.
Memory allocation is becoming harder because AI buyers are crowding out consumer electronics. Tom’s Hardware reported that Apple sources most of its DRAM from Micron, with smaller volumes from SK hynix and Samsung, but much of that supply has already been committed under long-term contracts running into 2027. The publication also said Apple is examining alternative suppliers, including China’s CXMT, although any move in that direction would face U.S. regulatory scrutiny. That makes the current squeeze more than a short-term procurement problem; it is a structural shift in how semiconductor capacity is being allocated across the industry.
TSMC’s own 2 nm rollout appears to be advancing quickly. MacRumors reported that the foundry’s initial 2 nm output is scaling at Baoshan and Kaohsiung, with yields already described as strong in industry commentary. TechSpot said TSMC is preparing to take wafer orders and expects the node to move into mass production in 2025, with Apple likely to be first in line. The same reports suggest the A20 family will be the first consumer chip built on the process, reinforcing Apple’s habit of adopting TSMC’s most advanced manufacturing technology ahead of rivals.
For buyers, the result could be a narrower launch window and a higher price tag. The Brazilian report warned that shortages could push retail prices up by as much as $300 on premium models, while the top-end foldable iPhone, often referred to as the iPhone Ultra in rumours, could sit well above the Pro line and approach $2,500. Tom’s Hardware said Apple still expects to ship about 200 million iPhone 18 units across the product’s life, down from 245 million iPhone 17 units in 2025, but the first weeks after launch may still be marked by limited availability. In practical terms, Apple’s challenge is no longer just building a faster phone; it is securing enough advanced components to build it at all.
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