Apple and TSMC ramp up advanced chip production for iPhone 15 Pro series

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Apple and TSMC ramp up advanced chip production for iPhone 15 Pro series
Credit: © Reuters.

TSMC is set to significantly increase its production of advanced 3-nanometer technology chips, which are expected to power a wide array of technologies, from smartphone CPUs to AI applications for various major companies. This expansion in production capacity comes as Apple (NASDAQ: AAPL ) exclusively utilizes TSMC's N3B node for its upcoming high-end iPhone 15 Pro and iPhone 15 Pro Max models.

Each wafer used in these models costs approximately $20,000, with initial yields around 50%. However, by August, reports indicated an improvement in yields nearing 75%, with TSMC absorbing the costs for any defective units. This enhancement in the manufacturing process is critical as it may lead to a doubling of TSMC’s revenue from such processes next year.

Furthermore, the projected increases in wafer production are set to rise from tens of thousands per month to one hundred thousand by the end of the year. This surge is attributed to Qualcomm (NASDAQ: QCOM )'s Snapdragon model and MediaTek’s Dimensity chipset, which are also entering production on TSMC's N3E node.

For Apple, revenue projections from its A17 Pro and M3 chips are estimated to reach billions this year for TSMC. Despite the substantial income, Apple itself has faced billions in tape-out process costs for these advanced chipsets, including the M3 Pro and M3 Max models.

In an unrelated development, Moscow has initiated a pilot project using "robocats" in three hospitals. These robotic assistants are designed to streamline patient services by distributing meals and medicine and offering health guidance.

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