Core Viewpoint - Apple is developing the A20 processor for the iPhone 18 series, which will be manufactured using TSMC's 2nm process, resulting in a significant cost increase to approximately $280, representing an over 86% rise compared to the A19 processor used in the iPhone 17 series [2][3]. Cost Analysis - The A20 processor will be the most expensive component in the iPhone 18, surpassing the previous highest cost component, the display, which was around $110 for the iPhone 16 Pro series [2]. - The A18 Pro processor used in the iPhone 16 Pro series had a cost of $135, while the A19 Pro processor in the iPhone 17 Pro series cost $150, indicating a trend of increasing processor costs [2]. Technology Transition - The A20 processor marks a transition from the previous three generations of 3nm technology to the latest 2nm technology, promising significant improvements in performance and efficiency [3]. - TSMC has reportedly informed clients that the last 3nm chips have seen a 20% price increase over previous generations, with an additional 50% increase for the new 2nm process, although this has not been officially confirmed [3].

Core Insights - The report from TrendForce indicates that the iPhone 17 series will feature the A19 processor, with the Pro models equipped with the A19 Pro processor [1] - The DRAM capacity for the iPhone 17 Air, Pro, and Pro Max will increase to 12GB, while NAND Flash storage will start from 256GB and go up to 1TB [1] - The iPhone 17 Air will utilize a silicon negative battery and eSIM technology to balance thinness and battery life [1] - A significant upgrade in the camera system is highlighted, with the front camera increasing from 12MP to 24MP and the rear camera upgraded to 48MP [1] - Pricing for the iPhone 17 base model is expected to remain the same as last year, while the Air, Pro, and Pro Max models are projected to increase by $50 to $100 compared to last year's models [1] - The iPhone 17 Air is expected to compete with the Samsung S25 Edge in terms of market pricing [1] - TrendForce forecasts a 3.5% growth in shipments for the iPhone 17 series in 2025 compared to the iPhone 16 series in 2024, with the Pro series remaining the main sales driver [1]

Core Viewpoint - The upcoming iPhone 17e is expected to feature a 6.1" OLED display, likely maintaining the 60Hz low-power screen from the iPhone 16e, and will be positioned as the "most affordable iPhone" [1] Group 1: Product Specifications - The iPhone 17e will adopt a design similar to the iPhone 16e, featuring the same Dynamic Island design [1] - It will be powered by the A19 processor, aligning with the iPhone 17 series, while the current iPhone 16e uses the A18 chip [1] - The front camera will include a 12MP sensor with 3D facial recognition, and the rear camera will feature a 48MP sensor [1] Group 2: Pricing and Storage - The starting storage capacity for the iPhone 16e is 128GB, with a base price of 4499 yuan [1]

Group 1 - TSMC is expected to produce Apple's A19 processor using 2nm technology in the second half of this year, while competitors Samsung and Intel are facing challenges in yield and progress, respectively [1] - Japan's 2nm technology has reportedly entered trial production and is expected to achieve mass production by next year, positioning Japan to compete directly with TSMC in chip manufacturing [3] - Japan established a chip company, Rapidus, in 2022 with support from major Japanese firms and the government, aiming to revitalize its semiconductor industry, which once held a significant global market share [3] Group 2 - The decline of Japan's semiconductor industry was accelerated by U.S. policies, leading to a loss of market dominance, with companies like Elpida falling behind [5] - The U.S. is seeking to diversify its chip supply sources, as TSMC currently produces 70% of advanced chips for American companies, and TSMC is raising prices for its upcoming 2nm technology by 50% [5] - Japan's Rapidus aims to revitalize its semiconductor sector, aligning with U.S. interests to create competition against TSMC [7] Group 3 - Japan's rapid advancement in 2nm technology is supported by IBM's technological expertise, which has historically played a significant role in chip manufacturing [7] - Japan has acquired advanced 2nm EUV lithography machines from ASML, becoming the third company after Intel and Samsung to do so, enhancing its production capabilities [7] - TSMC aims to maximize the value of its first-generation EUV lithography machines while Japan focuses on quickly achieving mass production of 2nm technology, leveraging its advantages in chip materials [9]