Originally Posted by Darkpriest667
knowing how apple likes to negotiate it is such a low margin that it might not even be worth it for TSMC. Revenue =/= profit. I want to know what the margins on apple iPhone wafers are compared to Intel wafers and so forth and so on.
Cellphone/tablet SoCs are a lot smaller and you can make more per wafer, due to how many you can make with each wafer, the fab wouldn't have as much issue with low yields as you do with say a 529 mm^2 Fermi GPU chip( the largest Apple SOC was the Ipad3's A5X
, and that's only 163 mm^2 on 45nm process).
You make less margin per chip but you can get more margin per wafer.
I am kinda intrigued with this switch, since Apple won't move over until 2014 which means Iphone 5S/ Ipad 5's SOC are going to be manufactured on Samsung 28nm HKMG(which haven't been all that impressive so far, the only product made on that process is Exynos Octa 5410 which loses to Snapdragon 600 in battery life).
After that TSMC claims they can be 20nm Finfet ready by the end of 2014 but last time that TSMC was this agressive on die shrink they had the 40nm debacle, so we will see how it turns out for Apple & other SOC makers against Intel's 14nm Atom in 2014.Edited by sherlock - 6/29/13 at 3:27pm