[ad_1]
The current chip shortage has forced TSMC to raise wafer prices by 20%, but according to the latest report, Apple is getting preferential treatment by charging just 3%. There are several reasons why the two companies may have agreed to these terms so that we can discuss them.
Apple is TSMC’s largest customer, so a promise of future wholesale orders would have encouraged both parties to a nominal price increase.
According to Apple analyst Lu Xingzhi, the California giant’s orders accounted for more than 20% of TSMC’s revenue, ITHome reports, which is believed to be one of the reasons the chipmaking giant would be willing to grant a concession. As Apple prepares for its iPhone 13 event which is slated to take place in the third week of September, TSMC has reportedly prepared a delivery of 100 million A15 Bionic for its biggest customer.
With this type of order only for a range of flagship smartphones, TSMC is sure to give Apple a small price increase over orders, as the Cupertino tech giant can make up for it with bulk orders. In fact, the Taiwanese maker has previously reportedly prioritized Apple over other customers when it comes to chip orders due to the current shortage.
The fact that Apple has reportedly secured 80% of TSMC’s 5nm orders for 2021, along with initial 3nm shipments for future iPhones, iPads, and Macs, should give its supply chain partner enough encouragement to give a massive discount to its biggest customer. Unfortunately, that means all other smartphone chip makers, such as Qualcomm, and others will have to rely on Samsung’s node, which is said to be lower than TSMC’s.
Unfortunately, TSMC also faces hurdles in chip development, and at first glance Apple won’t be able to unveil the next-gen 3nm chips for the iPhone 14 line. This will force Apple to rely on 4nm orders, and according to our previous report, the company also secured an initial supply of these to get the upper hand on the competition.
It is not confirmed if Apple will pass this 3% price increase to customers when it unveils the latest iPhone 13 and M1X MacBook Pro models in the coming weeks, but we’ll keep you posted, so stay tuned. .
News source: ITHome
[ad_2]
Source link