The M3 lineup is Apple’s first for various Mac products to be mass produced on TSMC’s next-generation 3nm process. In total, three chipsets can be configured for the newest 14-inch and 16-inch MacBook Pro models, but the costs required just to tape out the latest SoCs were estimated to have reached $1 billion, according to one analyst.
Analyst claims very few companies, such as Apple, can undertake this large a cost for the M3
Information surrounding the tape-out costs for the A17 Pro has not been mentioned by analyst Jay Goldberg, but he does state on Digits to Dollars that the expenditure incurred by Apple would have reached $1 billion for the M3. The exorbitant bill alone proves that only a few companies with deep pockets, like Apple, would be willing to absorb this amount just to get a headstart against the competition and provide customers with the best chips in the industry.
This might also explain why Qualcomm and MediaTek have yet to gravitate to the 3nm N3B process and will likely switch over to the N3E node, which reportedly has a better yield and improved pricing structure. In an earlier report, Apple was said to have contributed around $3.1 billion to TSMC’s 3nm revenue category, but the California-based giant reportedly paid $20,000 per wafer too.
Also, just because Apple is TSMC’s only customer seeking 3nm chip orders does not mean it will receive preferential treatment from its supplier. One report states Apple had to pay for the ‘bad’ wafers, and there was no special agreement between the two companies. With TSMC’s 3nm yields said to be at around 55 percent, only an entity as cash-rich as Apple would risk investing $1 billion to get its hands on cutting-edge technology.
However, it is not like the company is absorbing these costs for the customers either, as the base 14-inch M3 MacBook Pro with only 8GB unified RAM starts at $1,599 and only offers 512GB of non-upgradeable storage. For the fully-unlocked M3 Max, Apple is charging customers a massive $500 premium to want the 16-core CPU and 40-core GPU fueling their MacBook Pro of choice, so whether industry watchers wish to criticize Apple for its unfairly-priced business strategies, that $1 billion expense needs to be recouped somehow.
News Source: Digits to Dollars
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
Follow Wccftech on Google to get more of our news coverage in your feeds.
