The iPhone 15 Pro’s A17 chip is expected to be the first on the market to be built on the 3nm manufacturing process, and a new report by The Information reveals how Apple beat its Android competitors to get the new high-tech process ready for its next-gen silicon.
Apple’s excellent relationship with TSMC is no secret to the industry, and the former is leveraging the sheer scale of its silicon orders to get a better deal out of the Taiwanese chipmaker. According to the report, TSMC is apparently not charging Apple for the cost of defective chips built on the new 3nm process, instead swallowing the costs associated with defects as part of a “sweetheart deal” between both companies.
Yields for the A17 chip manufactured on the 3nm process are currently estimated to be as high as 80%, adds the report. In turn, TSMC is exclusively producing 3nm chips for Apple for an entire year before opening up its production capacity for any other chip customers, giving the Cupertino company a massive technological lead. The Information adds that Apple is able to save billions of dollars in the process by not paying for defective chips in exchange for helping TSMC ramp up and increase the production yield for its 3nm process.
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The deal works for TSMC as Apple is known to be its largest customer, allowing the former to absorb the financial impact of defective chips without taking a substantial hit. The one-year exclusivity deal gives TSMC enough time to perfect the production of 3nm chips, which can allow it to later charge other customers more down the line. In addition, TSMC will also be able to charge other customers for defective chips once production yields are deemed high enough.
iPhone 15 Pro and M3 Macs to feature 3nm chips
The iPhone 15 Pro and iPhone 15 Pro Max are not the only Apple devices expected to feature 3nm chips. Apple is reportedly ramping up work on its next-generation M3 chip for Macs, which is also said to be built on the 3nm process. The first M3-equipped Macs could be unveiled shortly after the iPhone 15 is revealed in September, with recent reports speculating a launch date as soon as October.
