Analyst Ming-Chi Kuo claims that reports Apple has an exclusive arrangement where TSMC absorbs the cost of failed processors is not true.
The recent report of a so-called “sweetheart deal” between Apple and TSMC claimed that it was an exclusive arrangement concerning the pricing of processors. Where all other companies pay for a complete wafer, including some failed processors, Apple does not.
Instead, it was claimed that TSMC absorbed the cost of any such yield failures, and Apple only paid for functioning ones. Apple was said to benefit from this to the tune of many billion dollars per year, and TSMC benefited in turn from Apple being willing to back its development of new processors.
Read more at AppleInsider.com