Apple has entered an agreement with Taiwan Semiconductor (TSMC) for the exclusive use of the 3nm process technology for one year.

This agreement is designed to boost the production of both M3 series processors for Macs and A17 Bionic chips intended for the forthcoming iPhones. Although the exact commencement date of this deal is yet to be confirmed, it's indicated that Apple will employ TSMC's 3nm manufacturing technology for these upcoming processors.

According to a report by The Information, Apple's large-scale chip orders, worth billions, enable certain terms, one of which involves TSMC absorbing the costs linked to faulty processor dies. The A17 Bionic chip is expected to be integrated into the iPhone 15 Pro and Pro Max.

The terms of Apple's contract with TSMC specify payments only for functional chips, assigning the financial responsibility for non-operational units to TSMC. Data from The Information highlights that Apple contributed to 23% of TSMC's $72 billion revenue in 2022, cementing Apple's status as a major client for TSMC. There's also an understanding that Apple's access to the 3nm manufacturing capacity is exclusive for roughly one year, after which it becomes available to other companies.

The early use of the 3nm technology has resulted in about 70% of the dies being functional, while the remaining 30% were discarded. As this technology advances, the yield is anticipated to rise. Apple's in-house M3 and A17 Bionic System-on-Chips (SoCs) are anticipated to be among the first to utilize the 3nm technology. The M3-based Macs are slated for an October release, aligning with Apple's standard release schedule, while the iPhone 15 series is set for a September launch.

If these reports hold true, companies such as Nvidia and AMD might be unable to access this specific node for a duration.

Apple Secures Exclusive One Year Deal with TSMC for 3nm Process