Taiwan Semiconductor Manufacturing Company (TSMC), the Taiwan-based contract chip manufacturer, has supplied its first 3nm process node, N3B, exclusively to Apple. The latest A17 Pro chipset, powering the recently launched iPhone 15 Pro and iPhone 15 Pro Max, utilizes this technology. Reportedly, Apple secured the majority of TSMC’s 3nm nodes in 2023, as the 3nm wafers were priced at $20,000 each, with yields at only 55%, making Apple the sole willing purchaser at that price point.
The China Times indicates that TSMC is currently producing 60,000-70,000 wafers per month for 3nm chips, a number expected to rise to 100,000 per month by the end of 2024. With increased production, Qualcomm and MediaTek are anticipated to sign up for the N3E second-generation 3nm node. The newer nodes are expected to be similarly priced to the previous N3B.
As of August, TSMC’s 3nm yield reportedly increased to 70%, prompting the company to offer Apple a deal. TSMC is said to be using defective chips produced for Apple to build the N3E node. Both the Snapdragon 8 Gen 4 and the Dimensity 9400 chipsets are expected to be produced using the defective N3Bs. The 3nm production could constitute 10% of TSMC’s revenue in 2024, doubling the 5% it represented in 2023.
In 2023, the A17 Pro and M3 chips are projected to generate $3.1 billion in revenue for TSMC. Apple has invested substantially, reportedly spending $1 billion to develop the 3nm-based M3, M3 Pro, and M3 Max chipsets. The immense costs involved underscore why Qualcomm and MediaTek allowed Apple to exclusively utilize the 3nm node in 2023.
