An analyst has disputed recent media reports claiming that TSMC is not charging Apple for defective 3nm chips. The analyst explains that customers typically buy chips from TSMC in two ways: as finished goods or as wafers. Most customers opt for the latter due to TSMC's high yield rates. However, Apple, which always demands the latest advanced node production services, purchases finished goods. TSMC then incorporates the cost of defective chips into the selling price of each finished chip, which is why the cost of new processors used in iPhones increases every year.