"How Apple Will Save Billions Of Dollars On Chips For New iPhone; TSMC In Deal With Apple To Cover Chip Defect Costs" - The Information
Portfolio Pulse from Happy Mohamed
Apple has struck a deal with Taiwan Semiconductor Manufacturing Co. (TSMC) for the production of its next iPhone's core processor. TSMC will use a new 3 nanometer process to make smaller, faster, and more power-efficient chips for Apple, a year before it makes them for anyone else. Additionally, TSMC will cover the cost of any defects that occur in the new manufacturing process.
August 07, 2023 | 3:12 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
The deal with TSMC will save Apple billions of dollars in potential defect costs and give it a competitive edge with a more powerful processor.
The deal with TSMC allows Apple to have a more powerful processor for its next iPhone, giving it a competitive advantage. Additionally, TSMC covering the cost of defects will save Apple billions, positively impacting its financials.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
TSMC's deal with Apple will likely increase its production costs due to covering defect costs, but it also solidifies its relationship with a major client.
While TSMC will incur increased costs due to covering defect costs, the deal solidifies its relationship with Apple, a major client. This could lead to more business in the future, offsetting the short-term cost increase.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100