TSMC agrees with Apple that it will assume costs of defective “A17 Bionic” chips

2023-08-07 17:53:07

In April, we showed here that the Taiwan Semiconductor Manufacturing Company (TSMC)the main supplier of processors in the Applewas facing difficulties related to the use of new chips manufactured in a process of 3 nanometers. These chips should equip the top-of-the-line models of the next iPhones, as well as future Macs with an “M3” chip.

According to The Information, Maçã and the supplier signed an agreement that has as one of its objectives this issue of using processors. According to the vehicle, TSMC will be responsible for the cost of defective chips. The utilization rate, however, rose from 55% to something between 70% e 80%meaning that one out of every five processors produced will not be fit for use.

Normally, this cost is not very expressive, since TSMC’s utilization rate is usually around 99% — although it is assumed, in general, by the supplier’s customers. However, with this greater difficulty in the production of new chips in a 3nm process, there is, at least in the initial moments of manufacture, a considerable rate of defective components, whose cost will be borne by the supplier.

Apple’s counterpart in the agreement consisted, according to the The Information, in contracting the production capacity of the Taiwanese factory exclusively in the first year of manufacturing the new technology — and with some advance notice. Considering the great demand from Apple, this is an opportunity for TSMC to improve its manufacturing process before starting to sell 3nm chips to other companies, such as Intelbeing able to pass on to them the cost incurred with the defective chips.

Thus, with the new agreement, Apple — which already has a close relationship with the Taiwanese company for a long time — was able to use the large volume of components it needs to make the deal worthwhile for TSMC. Thus, despite having to bear the costs of defective chips, the demand from Apple — the supplier’s biggest customer —, together with the time of exclusivity, makes the operation advantageous, with a view to optimizing production and increasing yield.

As reported by The Information, it is precisely this symbiosis that allows the interests of both companies to be realized and even enhanced. The fact that Apple orders so many processors and relatively in advance allows TSMC to advance in terms of research and development, something that is also important for Apple itself, which depends on the supplier’s capacity.

If the rumors are confirmed, the “A17 Bionic” will be the first processor from the Cupertino giant produced in a 3nm process, which might result in regarding 35% of performance gains. The new chip should equip the “iPhones 15 Pro/15 Pro Max”, which should be presented next month.

via 9to5Mac

1691432660
#TSMC #agrees #Apple #assume #costs #defective #A17 #Bionic #chips