TSMC to charge Apple for their Good performing 3nm chip dies rather than standard wafers

Even though Apple is rumored to have secured 90 percent of TSMC’s 3nm chipsets for the A17 Bionic and M3, the yield rate remains well below the 55 percent mark. Because wafer manufacture does not always produce the greatest results, TSMC is alleged to be charging Apple for good dies rather than ordinary wafer costs.

With a yield rate of 55%, over half of the wafers manufactured by TSMC on its 3nm process will be classified as a poor batch, making them unsuitable for Apple and its products. According to the EE Times, Brett Simpson, senior analyst at Arete Research, believes that both parties were able to avoid this pricing stumbling block, with Apple only paying for good wafer batches rather than regular pricing.

Knowing that the California-based behemoth is a valuable client, not just for the 3nm process but also for future cutting-edge nodes, TSMC most certainly complied. We previously projected that TSMC’s monthly wafer output for 3nm chips could reach 100,000 units by the end of 2023, as the iPhone 15 series is expected to be in strong demand. However, with a yield rate of 55%, only 55,000 wafers could be called ‘good’ and meet Apple’s quality standards.

The only way TSMC’s largest customer would pay standard wafer pricing is if the 3nm yield rate reached 70%, which is not likely to happen until the first half of 2024, according to the report. If yields improve, Apple might pay up to $17,000 per wafer next year.

There was also talk that instead of using N3B, TSMC’s initial 3nm version, Apple would switch to the N3E process in 2024, which is supposed to offer higher yields and cheaper production costs. Unfortunately, switching to the N3E process may result in performance losses for the A17 Bionic and M3, therefore Apple’s decision is currently unknown.

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