Apple will transition from 2-nanometer chips to 1.4-nanometer chips with the high-end 2028 iPhone models, reports Bloomberg. Chip supplier Taiwan Semiconductor Manufacturing Co. (TSMC) will make the majority of Apple's A22 Pro chips, but Apple is also considering having Intel make some of them.

The current iPhone 17 models use a third-generation N3P 3-nanometer process. The iPhone 18 Pro, ‌iPhone 18 Pro‌ Max, and foldable iPhone expected in September 2026 will be the first to have chips built on a next-generation 2nm process. 2027 chips will also use the 2nm process, and then Apple will upgrade some chips to 1.4nm in 2028.

TSMC has been working on 1.4nm chips for several years, and its A14 node will bring up to 15 percent better performance than chips built on its N2 2nm node. Alternatively, the chips will offer the same performance but with 30 percent power savings.

Every step down in node size comes with higher production costs and limited capacity due to the difficulty of manufacturing the most advanced chips. Powerful and efficient chips from TSMC are in high demand from AI server manufacturers like NVIDIA, leading to a more limited supply for consumer devices. During Apple's last earnings call, CEO Tim Cook said ‌iPhone 17‌ models had been constrained during the quarter because Apple couldn't get enough A19 and A19 Pro chips from TSMC.

Apple has been aiming to diversify its chip supply chain, and it is rumored to be working with Intel. While Apple previously used Intel-designed chips in Macs, with the new agreement, Intel would make Arm-based chips using Apple chip designs.

Current rumors suggest Intel will make lower-end chips for devices like the iPad and Mac, but Intel CEO Lip-Bu Tan is aiming to revitalize Intel's chip manufacturing business by focusing on more advanced process nodes. Intel is developing its 14A node for 1.4nm chips, and it is expected to reach production in 2028. Prior rumors indicate Intel could make non-Pro iPhone chips in 2028.