2nm Flagship Chips Could Make High-End Smartphones More Expensive – Here’s Why

The next generation of flagship smartphones could become more expensive as chip manufacturers move to advanced 2nm technology in chips. New reports suggest that some upcoming flagship processors could cost smartphone makers more than $200 per unit.

According to Taiwanese business publication TaiSounds, MediaTek’s upcoming Dimensity 9600 Pro could cost as much as $220 per unit. If accurate, this would make it the most expensive flagship smartphone chip from MediaTek so far.

The reported price would also represent an increase over the previous-generation Dimensity 9500. Earlier industry reports estimated that chip’s cost at around $180 to $200 per unit.

2nm Flagship Chips Could Make High-End Smartphones More Expensive – Here’s Why

However, these figures are not official prices. MediaTek does not normally publish the prices it charges smartphone manufacturers. The actual cost can vary depending on agreements between the chipmaker and individual phone companies.

The higher price is linked partly to the move to TSMC’s 2nm manufacturing process. Smaller manufacturing nodes can improve chip efficiency and performance, but they can also increase production costs.

Early benchmark results for the Dimensity 9600 Pro suggest that the new processor may not deliver a major performance increase over its predecessor. However, it could offer noticeable improvements in power efficiency.

See Also: OpenAI Deepens Samsung Partnership to Develop Next-Generation AI Chips

Qualcomm and Apple Chips Could Cost Even More

MediaTek may not be the only chipmaker facing higher costs. The report claims that Qualcomm’s Snapdragon 8 Elite Gen 6 Pro could cost between $240 and $260 per unit.

Apple’s upcoming A20 Pro chip is also reportedly priced at around $260. If these estimates prove accurate, several major flagship processors could cross the $200 mark for the first time.

The rising cost of flagship chipsets could put additional pressure on smartphone manufacturers. Companies such as Apple, Samsung and other major brands will have to decide whether to absorb the higher component costs or pass some of them on to customers.

A more expensive processor does not automatically mean that smartphone prices will rise by the same amount. Manufacturers consider many other factors, including displays, cameras, memory, batteries, software and marketing costs when setting final prices.

For now, the reported chipset prices remain unconfirmed. However, if the estimates are accurate, the shift to 2nm technology could become another factor affecting the price of high-end smartphones in the coming generation.