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Next year, Apple will reportedly include new chips on all iPhone 16 models, jumping from the A16 and A17 Pro in the iPhone 15 series to the all-new A18 chip based on TSMC’s second-generation 3nm process called “N3E.”

The news is a reiteration of past reports made by the analyst himself, Jeff Pu of Hong Kong-based investment firm Haitong International Securities. As Pu explains this time in a note to investors, Apple will introduce the new A18 N3E chip next year, and will be applied on all the models in the lineup.

This will be a huge jump, especially for the standard iPhone 16 models, which were previously expected to inherit the A17 Pro N3B chip currently used in the iPhone 15 Pro models this year. Nonetheless, Pu underscores in the note that there will be a distinction in the A18 chips that will be put in the standard and Pro models in the iPhone 16 line. As explained, although all the models in next year’s series will be based on the N3E process, the standard iPhone 16 will only carry the regular A18, while the iPhone Pro models will have the A18 “Pro” chip.

This will be an exciting change for iPhone fans, as Pu’s report indicates a promising improvement in the A18 chips. In his report, Pu highlighted the overheating issue in the iPhone 15 Pro models, suggesting that the A17 Pro plays a role in this. The analyst believes that despite being based on the 3nm process, it has no significant difference from its predecessor.

That issue is expected to change in the A18 N3E chip next year, with rumors claiming it will introduce huge enhancements alongside better power consumption and higher clock speeds. Apple is also expected to benefit from this change, with TSMC revealing that the N3E process is more affordable and has a better yield than N3B.


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