"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
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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
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