TSMC Not Charging Apple for Defective 3nm Chips Ahead of iPhone 15 Pro Introduction
Chip supplier TSMC has taken the unusual step of not charging Apple for defective 3nm chips ahead of the introduction of the iPhone 15 Pro and the A17 Bionic chip, The Information reports.
The iPhone 15 Pro is widely rumored to feature the A17 Bionic chip – Apple's first chip manufactured with a 3nm fabrication process. The 3nm node allows transistors to be even more densely packed, resulting in better performance and efficiency.
Introduction of upgraded chip technology like 3nm involves the production of a high number of defective chips until the manufacturing process can be perfected. According to The Information, TSMC is only charging Apple for "known good dies," with no fee for defective chips. This is highly unconventional, since TSMC clients usually have to pay for the wafer and all of the dies it contains, including any defective ones.
Since Apple's orders from TSMC are so large, it can apparently justify absorbing the cost of defective chips. Apple's willingness to be the supplier's first customer for new manufacturing processes helps it pay for the research and development of new nodes, as well as the facilities to make them.
The size of Apple's orders also enable TSMC to more quickly learn how to improve and scale up a node during mass production. Once production and yield issues with manufacturing 3nm chips improves and other customers seek the technology, TSMC can demand higher prices from those clients, as well as charge for defective dies.
Update: According to Apple analyst Ming-Chi Kuo, The Information's report is not quite accurate. Kuo says that Apple's standard deal with TSMC does not ever include "defective" chips. Apple purchases "finished goods" that are of the expected quality rather than "wafer-buy," which can include defective chips.
Most chip buyers have a "wafer-buy" deal with TSMC and must eat the cost of defective chips, but in the case of TSMC and Apple, TSMC absorbs the cost through the price of the chips.
Popular Stories
Apple is not expected to release a standard iPhone 18 model this year, according to a growing number of reports that suggest the company is planning a significant change to its long-standing annual iPhone launch cycle.
Despite the immense success of the iPhone 17 in 2025, the iPhone 18 is not expected to arrive until the spring of 2027, leaving the iPhone 17 in the lineup as the latest...
Apple's restrained artificial intelligence strategy may pay off in 2026 amid the arrival of a revamped Siri and concerns around the AI market "bubble" bursting, The Information argues.
The speculative report notes that Apple has taken a restrained approach with AI innovations compared with peers such as OpenAI, Google, and Meta, which are investing hundreds of billions of dollars in data...
The Apple Fitness+ Instagram account today teased that the service has "big plans" for 2026. In a video, several Apple Fitness+ trainers are shown holding up newspapers with headlines related to Apple Fitness+.
What's Apple Fitness+ Planning for the New Year?
Something Big is Coming to Apple Fitness+
The Countdown Begins. Apple Fitness+ 2026 is Almost Here
2026 Plans Still Under ...
iPhone 17 Pro and Pro Max owners are having trouble with the speakers of their devices, and have complained about a static or hissing noise that occurs when the iPhone is charging.
There are multiple discussions about the issue on Reddit, the MacRumors forums, and Apple's Support Community, where affected users say there is a noticeable static noise "like an old radio." Some people report...
Apple is rumored to be introducing a foldable iPhone in September 2026, and since it will bring the biggest form factor change since the iPhone was introduced in 2007, curiosity about the design is high. A 3D designer created an iPhone Fold design based on rumors, and we printed it out to see how it compares to Apple's current iPhones.
Subscribe to the MacRumors YouTube channel for more ...
Apple hasn't updated the Apple TV 4K since 2022, and 2025 was supposed to be the year that we got a refresh. There were rumors suggesting Apple would release the new Apple TV before the end of 2025, but it looks like that's not going to happen now.
Subscribe to the MacRumors YouTube channel for more videos.
Bloomberg's Mark Gurman said several times across 2024 and 2025 that Apple would...
Apple hasn't updated the Mac Pro since 2023, and according to recent rumors, there's no update coming in the near future. In fact, Apple might be finished with the Mac Pro.
Bloomberg recently said that the Mac Pro is "on the back burner" and has been "largely written off" by Apple. Apple apparently views the more compact Mac Studio as the ideal high-end pro-level desktop, and it has almost...
Apple today added the final 13-inch MacBook Air powered by Intel processors, the Apple Watch Series 5, and additional products to its vintage products list. The iPhone 11 Pro was also added to the list after the iPhone 11 Pro Max was added back in September.
The full list of products added to Apple's vintage and obsolete list today:
MacBook Air (Retina, 13-inch, 2020)
iPhone 8 Plus 128GB ...
