TSMC and Apple 3 nm Chip Collaboration
TSMC and Apple 3 nm Chip Collaboration

Apple Secures Exclusive Deal with TSMC for Next-Gen 3 nm Chips: A Strategic Move for iPhones and Macs

In the dynamic world of technology, strategic partnerships often define the trajectory of innovation. Apple, a titan in the tech industry, has once again made headlines with its recent collaboration with Taiwan Semiconductor (TSMC). The buzz? Apple is set to harness TSMC’s groundbreaking 3 nm manufacturing process for its upcoming chips, including the M3 series for Macs and the A17 Bionic for select next-gen iPhones.

The Apple-TSMC Partnership: A Deep Dive

For several months, industry insiders have speculated about Apple’s shift to TSMC’s 3 nm technology. However, a recent report from The Information sheds light on the intricacies of this partnership. Apple’s massive chip orders, amounting to billions, have not only secured its position as a priority for TSMC but also led to a unique arrangement. TSMC has agreed to absorb the costs of defective processor dies, a move that is unconventional in the semiconductor industry.

To understand the significance, one must delve into chip manufacturing. Silicon wafers are used to produce multiple chips simultaneously. These wafers are then segmented into individual processor dies. Given the nascent stage of the 3 nm process, a considerable percentage of these dies might be defective. Typically, companies would bear the cost for each die, functional or not. However, Apple’s substantial orders have led TSMC to waive charges for defective ones, resulting in significant savings for Apple.

TSMC and Apple 3 nm Chip

Do you know that the IT world is buzzing with excitement as Apple fans await the arrival of the next-generation iPad? With the 10th-generation iPad having debuted not too long ago, everyone is wondering when Apple will announce the 11th-generation iPad’s release date:

The Financial Dynamics

The Information highlights that nearly 70% of the initial 3 nm dies were functional, a figure that’s expected to rise as the manufacturing process is refined. In 2022, Apple contributed to a whopping 23% of TSMC’s $72 billion revenue, reinforcing its position as TSMC’s premier customer. Furthermore, reports suggest that Apple has monopolized TSMC’s 3 nm manufacturing capacity, with exclusivity expected to last approximately a year before other enterprises can access this technology.

This strategic alliance isn’t new. Since 2014, when Apple integrated TSMC’s technology for the Apple A8 and iPhone 6, the bond has only strengthened. While Apple previously diversified its processor sources, the past decade has seen a predominant reliance on TSMC.

TSMC: The Semiconductor Powerhouse

TSMC’s reputation in the chip manufacturing sector is unparalleled. Catering to industry giants like Nvidia, AMD, Qualcomm, and now predominantly Apple, TSMC has emerged as the go-to for advanced products. Even Intel, historically self-reliant for chip manufacturing, has turned to TSMC for its Arc GPUs and parts of its Meteor Lake processors.

While competitors like Samsung and Intel are gearing up with their versions of the 3 nm technology, TSMC’s advanced processes and strategic partnerships, especially with Apple, give it a distinct edge. However, the tech landscape is ever-evolving. TSMC’s current lead doesn’t guarantee perpetual dominance, and Apple always has the option to diversify its partnerships if the terms become less favorable.


Apple’s exclusive deal with TSMC for the 3 nm chips underscores the strategic maneuvers companies undertake to stay ahead in the tech race. As we await the next-gen iPhones and Macs powered by these chips, one thing is clear: the future of technology is not just about innovation but also the alliances that fuel these innovations.

About Jim williams 321 Articles
Jim Williams loves technology and writes articles for Safari Voice. He's really good at explaining complicated ideas in a simple way so that everyone can understand. Jim has been working in the tech industry for a long time, so he knows a lot about how it's changing. He does careful research to make sure his articles have the right information, and he always keeps up with the latest news. Jim wants to help people make smart choices about technology, so he writes articles that give them the knowledge they need. You can trust Jim's advice because he's an expert in the tech world. If you read Safari Voice, you'll be able to stay informed about the newest tech trends and get helpful reviews with Jim's guidance.

Leave a Reply

Your email address will not be published.