Apple to Buy TSMC’s Entire Supply of 3nm Chips for 2023::Apple will receive all of TSMC’s first-generation 3-nanometer process chips this year for upcoming iPhones, Macs, and iPads, according to…
Apple to Buy TSMC’s Entire Supply of 3nm Chips for 2023::Apple will receive all of TSMC’s first-generation 3-nanometer process chips this year for upcoming iPhones, Macs, and iPads, according to…
In this case it’s not truly a result of limited fab availability.
TSMC has two main variants of their 3nm node. The original one, that Apple is using, is N3B. It has worse yields, so TSMC started work on another variant, N3E. N3E has much better yields but will not be ready until late 2023 or early 2024. Everyone else besides Apple opted to skip N3B and go for N3E. Apple, with their very consistent release cadence, didn’t want to wait for N3E. So Apple — and only Apple — is using N3B.
Thus, we have:
(1) TSMC only has one 3nm node in 2023: N3B.
(2) TSMC only has one customer for N3B: Apple.
(3) TSMC will never have any other customer use N3B, and have no incentives to build capacity beyond what is needed now.
It’s effectively tautological that their entire 3nm allocation will be sold exclusively to Apple in 2023.
So wait a few years before buying a new phone, I’d what your saying?
The practical performance differences between N3B and N3E should be more or less immaterial to the end user. N3E just has a lower defect rate, meaning a greater portion of chips will be valid when made under that process versus made under N3B. There was a fairly credible rumor a few weeks ago that Apple was paying TSMC per valid chip instead of the industry standard per wafer. So for us, the end users, the cost won’t even be passed down — that’s just a cost that TSMC has to bear.
That said, if you don’t need a new phone now, waiting is good in general. Whatever is out today, they’ll have something better next year. Wait as long as you’re willing and able between upgrades. Unless you’re absolutely loaded with money, I guess.