According to a blogger, Apple has declined TSMC‘s request for a price increase in 2023. This decision was made because iPhone sales are declining, making it hard for Apple to justify raising prices for the new process and technology. Apple thinks it has already paid for the new process and any more price increases would be unfair given the disappointing iPhone sales performance.
Apple Pushes Back on TSMC Price Hike Amid 3nm Production Struggles
TSMC’s struggles with its 3nm chip production have also caused Apple to reconsider its performance targets for the upcoming high-end iPhone SoC. As the only customer for TSMC’s 3nm chips, Apple is waiting for the semiconductor manufacturing giant to provide a solution. The current situation could jeopardize the long-standing cooperative relationship between the two companies, as Apple may have to sacrifice the performance of its A17 chip if improvements cannot be made.
The performance concerns may also extend to Apple’s M3 SoC, which is designed for future Mac computers. If TSMC’s 3nm process cannot meet Apple’s expectations, the M3 SoC could similarly suffer a performance setback.
Industry insiders speculate that Apple might choose to prioritize energy efficiency for the A17 Bionic and M3 chips over raw performance. This would be a strategic shift in response to the ongoing challenges with TSMC’s 3nm process. However, given TSMC’s current efficiency, any significant changes in the short term appear unlikely.
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