The persistent shortage of DRAM is forcing Apple to scale back its ambitions for the forthcoming A20 chip, which is designed to power the standard iPhone 18. This situation highlights that even tech giants like Apple are not immune to the fluctuations in the DRAM market.
Challenges for Apple’s A20 Chip: Abandoning Advanced WMCM Packaging Technology
Initially, Apple’s A20 chip was anticipated to transition from TSMC’s InFO (Integrated Fan-Out) packaging technology to the more advanced WMCM (Wafer-level Multi-Chip Module) packaging. This innovative method allows for the combination of multiple individual dies – including the CPU, GPU, and Neural Engine – into a single compact module. The shift to WMCM was expected to provide unprecedented configuration flexibility, enabling Apple to optimize performance significantly.
WMCM technology is designed to offer various chip arrangements through the selective combination of CPU and GPU cores. Importantly, it allows each component, such as the CPU, GPU, and Neural Engine, to function independently, optimizing power usage for specific tasks and thereby improving overall energy efficiency. A significant benefit of this approach is the capability to integrate RAM directly onto the chip wafer with the processor, which dramatically enhances performance by reducing latency.
Furthermore, by arranging all essential components on a redistribution layer and forgoing the traditional silicon interposer, WMCM enhances heat management and boosts the density of interconnects, ultimately leading to a more efficient chip architecture.
I’m skeptical that Qualcomm can stage a meaningful rebound within this year. Why did Apple choose to adopt WMCM packaging for the iPhone 18? It was precisely to enable the use of more DRAM for on-device AI. However, according to recent industry checks, even Apple appears to… https://t.co/O7Mdh7cxqG
— Jukan (@jukan05) April 29, 2026
According to industry insider Jukan, the current DRAM shortage and rising prices are leading Apple to abandon its plans for incorporating WMCM technology in the base A20 chip. The initial objective behind adopting this new packaging was to support increased RAM capabilities and lower latency, particularly for edge AI applications.
Reports indicate that Apple intends to preserve WMCM technology for the A20 Pro chip, which is expected to be used in the higher-end iPhone 18 Pro and Pro Max models. However, these premium models are not anticipated to feature an increase in RAM capacity; Apple believes that the existing 12GB LPDDR5 modules will suffice to maximize the benefits of WMCM packaging.
Consequently, it appears that the standard iPhone 18 will not include the 12GB RAM configuration previously speculated in some industry analyses. Our recent breakdown indicates that a 12GB LPDDR5 module could cost Apple around $180 per unit in 2027, coinciding with the expected launch of the iPhone 18. Such a cost makes it impractical for the low-margin base model to accommodate a RAM upgrade.
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