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
Significant changes are expected to arrive with Apple's fourth-generation iPhone SE, in terms of both design and hardware, MacRumors has learned. The iPhone SE 4, known internally under the codename Ghost, is expected to receive a new design derived almost entirely from the base model iPhone 14. According to our sources, the iPhone SE 4 will use a modified version of the iPhone 14 chassis...
Apple today released iOS 17.0.2 and iPadOS 17.0.2 updates, with the software coming five days after the releases of iOS 17.0.1 and iPadOS 17.0.1. Today's iOS 17.0.2 and iPadOS 17.0.2 updates arrive as build 21A351 and can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Note that iOS 17.0.2 was previously made available for iPhone...
Wednesday September 27, 2023 1:57 pm PDT by
Juli CloverJust a week after releasing iOS 17, Apple has seeded the first beta of iOS 17.1 to developers. iOS 17.1 adds some features that Apple promised were coming to iOS 17 in the future, plus it refines and improves some existing features. This guide covers everything new in the first iOS 17.1 beta. Apple Music Favorites You can favorite songs, albums, playlists, and artists in the iOS 17.1...
iPhone 15 Pro and Pro Max overheating concerns continue to make headlines this week, with the topic highlighted by The Wall Street Journal and Bloomberg. Both of the reports document anecdotal complaints from customers, and outline potential causes, but it's unclear how many devices are actually affected. Bloomberg said the overheating could be caused or compounded by the iPhone's setup...
Complaints about heat issues with the iPhone 15 Pro models are not related to TSMC's 3-nanometer node that was used for the A17 Pro chip, according to well-respected Apple analyst Ming-Chi Kuo. Kuo says that overheating could be caused by "compromises made in the thermal system design" that allowed Apple to cut down on the weight of the iPhone 15 Pro models. Kuo says that the reduced heat...
Apple added a USB-C port to the iPhone 15 lineup this year, allowing it to work with USB-C cables, USB-C power banks, and more. It turns out that some USB-C battery packs are not working properly with Apple's iPhone 15, resulting in charging issues. As highlighted on Reddit and the MacRumors forums, not all existing USB-C power banks can be used with the iPhone 15 models, perhaps due to the...
In macOS Sonoma, Game Mode prioritizes CPU and GPU performance for gaming purposes on Macs. For those unfamiliar with Game Mode, Apple on Tuesday published a support document providing more information on how to use the new feature. Game Mode optimizes your gaming experience by giving your game the highest priority access to your CPU and GPU, lowering usage for background tasks. And it...
Top Rated Comments
They can build other products from the "defective" chips. Look at A15 for example. It has so many variations, because of yield issues:
Full A15 (5 GPU / 6 CPU cores):
* iPhone 13 Pro/13 Pro Max/14/14 Plus
Binned A15 #1 (4 GPU / 6 CPU cores):
* iPhone 13/13 Mini, SE (3rd gen)
Binned A15 #2 (5 GPU / 6 CPU underclocked cores)
* iPad Mini 6
Binned A15 #3 (5 GPU / 5 CPU cores - 1x Blizzard efficiency core disabled):
* Apple TV 4K (3rd gen)