Apple is planning to overhaul its chip design for the 2026 iPhones, in a move that could mark the first time it uses advanced multi-chip packaging in a mobile device. It sounds complicated, but here’s what this means.
According to analyst Jeff Pu in a new report for GF Securitiesthe iPhone 18 Pro, 18 Pro Max, and the long-rumored iPhone 18 Fold are expected to debut Apple’s A20 chip, built on TSMC’s second-gen 2nm process (N2).
But that’s only part of the story. The more interesting bit is how those chips will be assembled.
How those chips will be assembled
For the first time, Apple is set to adopt Wafer-Level Multi-Chip Module (WMCM) packaging for its iPhone processors. WMCM allows different components, like the SoC and DRAM, to be integrated directly at the wafer level, before being diced into individual chips.
It uses a technique that connects the dies without needing an interposer or substrate, which can bring both thermal and signal integrity benefits.
If you have no idea what a silicon interposer is, this video does a great job of explaining it.
In other words, Apple’s next-gen chip won’t just be smaller and more power-efficient thanks to N2. It’ll also be physically closer to its onboard memory, enabling better performance and potentially lower power consumption for tasks like AI processing and high-end gaming.
Behind the scenes, Pu reports TSMC is building a dedicated production line and expects to quickly ramp up by 2027:
“TSMC will establish a dedicated WMCM production line at its AP7, leveraging equipment and process similar to CoWoS-L without on-substrate. We see TSMC is preparing capacity of up to 50KPM by end of 2026 and estimate the capacity to reach 110-120KPM by end-2027, due to the increase in adoption.”
What this means
For Apple, this is a big leap in chip design, similar to when it adopted 3nm ahead of most of the industry. And for the broader mobile market, it suggests that technologies once reserved for data center GPUs and AI accelerators are making their way into smartphones.
And if you’re wondering what this means for the iPhone 18 Fold: it seems Apple isn’t just reserving its most novel hardware for its form factor. It may also be the company’s testbed for next-gen silicon packaging.
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