TSMC Waives Charges for Faulty 3nm Chips in Preparation for iPhone 15 Pro Release

TSMC Waives Charges for Faulty 3nm Chips in Preparation for iPhone 15 Pro Release

TSMC Forgoes Charges on Defective 3nm Chips for Apple’s iPhone 15 Pro

TSMC Semiconductor Chip Inspection

Taiwan Semiconductor Manufacturing Company (TSMC) has taken a rather unconventional step by waiving charges for defective 3nm chips that are being produced for Apple’s highly anticipated iPhone 15 Pro. The iPhone 15 Pro is rumored to come equipped with the A17 Bionic chip, which will be the first chip manufactured on a 3nm fabrication process. This new fabrication process allows for even denser transistor packing, resulting in enhanced performance and efficiency.

The introduction of new chip technology, such as the 3nm node, often comes with the production of a significant number of defective chips until the manufacturing process is perfected. However, in an unusual move, TSMC is only charging Apple for “known good dies,” excluding any fees related to defective chips. Typically, TSMC’s clients are required to pay for the entire wafer, including all dies, whether they are defective or not.

Apple’s sheer volume of orders from TSMC justifies the company absorbing the cost of defective chips. Apple’s position as the supplier’s first customer for new manufacturing processes not only helps TSMC finance the research and development of new nodes but also supports the establishment of manufacturing facilities.

Moreover, Apple’s substantial orders enable TSMC to expedite the learning process in improving and scaling up the 3nm node during mass production. As production and yield issues with 3nm chip manufacturing improve and other customers seek this advanced technology, TSMC will be in a favorable position to demand higher prices from these clients and also charge for defective dies.

The Significance of 3nm Apple Silicon

Apple choosing the 3nm fabrication process for its upcoming A17 Bionic chip signifies a major technological leap in mobile chip design. The transition from a 5nm to 3nm process allows for a higher density of transistors, resulting in improved performance, power efficiency, and overall device capabilities.

With a smaller node, more transistors can be packed into the same physical space, enabling chips to perform more calculations per second. This increased density not only enhances the overall speed and responsiveness of the device but also improves power efficiency, leading to longer battery life.

The A17 Bionic chip will likely feature even more advanced neural engines and image processing capabilities, taking Apple’s mobile devices to new heights in terms of artificial intelligence and camera performance. Additionally, the 3nm fabrication process will contribute to the thermal efficiency of the chip, allowing for sustained high performance without overheating.

The Benefits of Apple’s Partnership with TSMC

Apple’s long-standing partnership with TSMC has proven to be highly beneficial for both companies. As a major customer, Apple’s large orders enable TSMC to fund the development of new manufacturing nodes, such as the 3nm process. By collaborating closely with TSMC, Apple not only secures preferential access to cutting-edge chip technology but also contributes significantly to TSMC’s ability to improve the scalability and efficiency of their manufacturing processes.

Apple’s willingness to be an early adopter of new technologies, like the 3nm process, provides TSMC with invaluable feedback and real-world production scenarios. This enables TSMC to quickly identify areas for improvement and optimize the manufacturing process to minimize defects and enhance yield rates. As a result, TSMC can accelerate the mass production and commercialization of the 3nm node, benefiting not only Apple but also other clients seeking to integrate this advanced technology into their products.


TSMC’s decision to forego charges on defective 3nm chips for Apple’s iPhone 15 Pro demonstrates the exceptional partnership between the two companies. Apple’s status as a major customer allows them to absorb the cost of defective chips, supporting TSMC’s research and development efforts. This collaboration not only fuels the advancement of chip manufacturing technology but also positions both companies at the forefront of innovation in the mobile industry.

The introduction of the 3nm fabrication process with the A17 Bionic chip signifies a significant leap in performance, energy efficiency, and overall device capabilities. Apple’s early adoption of this cutting-edge technology further accelerates its development and sets the stage for even more groundbreaking advancements in the future.

As consumers eagerly await the release of the iPhone 15 Pro, it is clear that this remarkable collaboration between TSMC and Apple will deliver a device at the forefront of mobile technology, setting new standards for performance, efficiency, and user experience.