Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
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Re: Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
#2It would be interesting to see what would happen if TSMC could fill the capacity with other orders. Quite possible, as it seems to be the most sought chipmaker.
What would Apple do in that case? Samsung doesn’t come close to TSMC just yet.
Re: Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
#3No post body was provided.
Re: Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
#4It would be interesting to see what would happen if TSMC could fill the capacity with other orders. Quite possible, as it seems to be the most sought chipmaker. What would Apple do in that case? Samsung doesn’t come close to TSMC just yet.
They're probably both flexing. TSMC is so valuable because Apple's reserved high end high volume orders allows them to expand capacity, Apple probably also is a tester for new tech.
They'll both come to terms in some middle ground. Apple has history of such flexing to force other parties to play nice.
Re: Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
#5It would be interesting to see what would happen if TSMC could fill the capacity with other orders. Quite possible, as it seems to be the most sought chipmaker. What would Apple do in that case? Samsung doesn’t come close to TSMC just yet.
> It would be interesting to see what would happen if TSMC could fill the capacity with other orders.
Yeah, if numbers add up then why not. The trouble is numbers did not add up in past and in a world heading for recession it does not seem likely soon.
Re: Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
#6I'd love to be a fly on the wall during these negotiations. Just to see what the heck they even talk about, what information each party comes armed with, and what kinds of concessions get offered.
I mean it isn't just a "we'll lower this" I bet there's lots of juicy confidential future roadmap stuff, things like "Ok we'll help you invest in this _____ tech and machinery but you have to knock off half a cent" or who knows what!
Re: Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
#7TSMC charging 6% more for the 3nm process seems reasonable. Article notes Apple accounts for 25% of their revenue and says this gives them leverage over TSMC but aren't they the only 3nm player in town?
Re: Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
#8It would be interesting to see what would happen if TSMC could fill the capacity with other orders. Quite possible, as it seems to be the most sought chipmaker. What would Apple do in that case? Samsung doesn’t come close to TSMC just yet.
They're probably both flexing. TSMC is so valuable because Apple's reserved high end high volume orders allows them to expand capacity, Apple probably also is a tester for new tech. They'll both come to terms in some middle ground. Apple has history of such flexing to force other parties to play nice.
When you buy such a huge part of the available capacity then you are in the position to bargain like this, unlike "smaller" clients.
Re: Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
#9Apple has more to lose here as they've bet their future on Apple Silicons currently only manufactured at TSMC. So it is interesting to see them still trying to arm-twist TSMC - would love to see their playbook as this is something they are known to do with all their suppliers.
Re: Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
#10What other options does Apple have? Intel doesn’t manufacture ARM chips (yet) and Samsung is 1+ process nodes behind the upcoming TSMC N3E