The main chip is significantly more expensive, as is the overall package
However, an important distinction must be made here, because the price of the entire A20 including all components of the SoC does not double, but only the main chip itself. Nevertheless, this increases the unit price from currently around 200 dollars to up to 280 dollars. Previous architectural changes had also led to more expensive chips, but not to this extent. Manufacturers have to take into account significantly more scrap in the first few weeks to months, which of course makes the individual chips more expensive. However, it would be difficult to absorb an additional $80 without a price increase for the customer or other cost-cutting measures in terms of equipment. As recently reported, at least Apple and Samsung have some adjustment screws due to high margins so that they don’t necessarily have to pass everything on to the end consumer.
New manufacturing process: More than just 3 to 2 nm
Added to this is the generally more complex production of the A20, which uses GAAFET/Nanosheet for the first time (instead of FinFET as before). Briefly explained: TSMC refers to the concrete implementation of the “Gate all Around” architecture as Nanosheet, in which the control gate completely encloses the channel from all sides. This allows current flow to be controlled more precisely than with FinFETs, enabling lower leakage currents, better energy efficiency and higher switching speeds. Further cost factors include the more complex packaging and memory configuration, which raises the A20 to the price point mentioned above.