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A17 chip – TSMC wanted price increase, Apple reportedly said no


Apple’s A17 chip is expected to be used first in M2 Macs later this year, and later in next year’s iPhone 15 Pro models. It is reported that the chip will use TSMC’s new 3nm process.

Given the increased sophistication of the fabrication process, TSMC has reportedly told Apple it plans to increase the price it charges, but Apple is said to have “rejected” the new planned pricing…

Background

It was first reported last year that Apple would be one of the first companies in the world to adopt a new 3nm process, and that we’d see the first of these chips in 2023.

The latest iPhone 14 Pro models use an A16 chip, which some have referred to as 4nm, but it would be more accurate to say that it’s a die-shrunk 5nm chip.

A switch to 3nm chips could allow up to 4 dies, with anything up to 40 CPU cores per chip.

It was reported last month that 3nm Apple Silicon chips will first debut in M2 Pro Macs, ahead of an A17 chip for next year’s iPhones. Additionally, Apple is expected to repeat its iPhone 14 strategy next year, with only the Pro models getting the latest chip made using the new process.

Apple “rejected” A17 pricing

A report in the Economic Daily News said that Apple chipmaker TSMC wanted to charge the Cupertino company more for the more advanced process.

Originally, it was rumored in the industry that the price of TSMC would increase next year, ranging from about 6% to 9% according to the process, but later it was rumored that there was a negotiated correction, and the increase jumped from 3% , and the growth rate of the mature process was 6%.

However, it goes on to say that Apple refused to agree to a price increase.

However, the latest rumor is that Apple, a major customer, refuses to raise the price.

Normally, it would be up to a supplier to set a price, with perhaps some negotiation from customers – especially given that TSMC is likely to be the first chip manufacturer in the world to offer a 3nm process.

But this is Apple. The company is responsible for more than 25% of TSMC’s revenue, and has a reputation for hard bargaining. Or, as is suggested to be the case here, no bargaining at all…

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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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