TSMC entered mass production of 3nm chips with yields above 70%. And customers usually pay for all cards and chips, including defective ones. However, under exclusive terms of cooperation, Apple pays a Taiwanese chip maker only for good chips, according to the AppleInsider portal, citing a report by The Information.
According to Apple COO Jeff Williams, Apple and TSMC have a long and rich relationship. According to The Information, this relationship is truly unique and stands out both in the context of TSMC’s cooperation with its other customers and in the context of other chipmakers’ relationships with their customers.
In particular, TSMC is not charging Apple the full cost of the 3nm wafers, which contain hundreds of future processor dies. The Taiwanese contract manufacturer only charges Apple for good chips. Typically, the price difference is not statistically significant, because over time TSMC somehow reaches the production level of 99% good chips on a silicon wafer. However, currently the level of usable 3nm crystals is around 70-80%. Since Apple doesn’t pay TSMC for bad matrices, it saves a lot. We’re talking billions of dollars.
Apple bought almost all of TSMC’s 3nm production facility a few years ago. The information states that TSMC is able to lead the development of new technological processes in part due to the fact that Apple is ready to pay upfront and in large volumes for production facilities for the production of new advanced chips. It should be noted that as soon as TSMC reduces the level of crystal manufacturing defects and increases the production of suitable chips, it will be able to provide its services for the production of 3nm processors to other companies, but without such favorable conditions.
It is assumed that the use of 3nm processors in future iPhone 15 smartphones will increase their energy efficiency by up to 35% compared to current iPhone 14 models, according to AppleInsider.
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