Skip to main content

A17 chip – TSMC wanted price increase for 3nm process, Apple reportedly said no

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

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 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 fabricator 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 …

FTC: We use income earning auto affiliate links. More.

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

Comments

Author

Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!


Ben Lovejoy's favorite gear

Manage push notifications

notification icon
We would like to show you notifications for the latest news and updates.
notification icon
Please wait...processing
notification icon
We would like to show you notifications for the latest news and updates.
notification icon
Please wait...processing