Apple has finally accepted TSMC chip price increase, a report from Apple Insider (via Economic Daily News) claimed.

Last week, it was reported that giant chipmaker TSMC informed Apple that it would implement a price hike for the company’s chip production in 2023. According to reports, Apple refused to accept the new prices.

However, in a new development, it seems that Apple has finally agreed with new price on chip production set by TSMC.

apple, tsmc, tsmc chip price increase
(Photo : Annabelle Chih/Getty Images)

Apple is Likely the First Company to Use 3-nanometer Processor for iPhone 15

According to Tech Times, the chip would potentially power the rumored iPhone 15 model lineup as well as the M3 chip of the next generation of Mac mini and MacBook.

According to Apple Insider, TSMC is a major source of chips that Apple uses for its devices, particularly the iPhone.

It is highly likely that Apple could be the first company to utilize the new 3-nanometer processors of TSMC. It is expected that the iPhone 15 Pro will be powered by the much-anticipated A17, equipped with the 3-nanometer chip.

As of writing, it is unknown which chip will have a price increase whether it’s the 3nm, or the next batch of chip production.

Rumors on TSMC’s plan to implement an increase first surfaced in August 2022. Eventually, the semiconductor company informed Apple that the price hike would indeed happen in 2023.

Initially, it was reported that Apple refused to accept TSMC’s proposal to increase its chip production prices, which is up by 6%.

But now it seems that Apple changed its decision and instead decided to accept TSMC’s plan to implement a price hike. Apple has agreed to the price increase that the giant chipmaker decided to impose.

TSMC is Now Working on A17, Report Says

According to 9to5Mac, Apple and Nvidia were already informed by TSMC of the possible price increase. The 8-inch chip wafers are expected to increase by 6 percent, while the 12-inch chip wafers will be up by 5 percent.

Initially, Apple rejected the plan of the Taiwanese semiconductor manufacturer to increase the chip’s price. But recent reports suggest that Apple is now willing to pay the additional cost.

TSMC supplies chips for major Apple devices including iPhone, iPad and MacBook. The Cupertino-based tech giant is also TSMC’s biggest client.

Given the situation, it is actually possible for Apple to negotiate the prices of the chips with the Taiwanese semiconductor manufacturer. However, due to economic downturn, it seems that the price increase is something that cannot avoided.

TSMC is the maker of the 4-nanometer chip that is behind the A16 Bionic chip, which powers the more expensive iPhone 14 Pro models.

According to reports, the giant chipmaker is now working on A17 Bionic chip that will be equipped by the 3-nanometer. Rumors say that the A17 will power the upcoming iPhone 15, which is expected to arrive in 2023.

In addition, it is said TSMC is also working on the M3, which will power next batch of MacBooks and iPads.

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