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Apple Books TSMC’s Entire 5nm Production Capability
- kristianpaul 6y ago“ TSMC will build 5nm chips for the iPhone 12, iPad Air, 5G iPad Pro, and any future MacBook or iMac systems Apple launches with its own custom ARM silicon. In 2019, Apple is thought to have accounted for about 20 percent of TSMC’s monthly revenue, making it one of TSMC’s largest customers.”
- Traster 6y ago>Apple is thought to have accounted for about 20 percent of TSMC’s monthly revenue, making it one of TSMC’s largest customers. Well, top 5 atleast.
- shuckles 6y agoTSMC had about $35b in annual revenue in 2019. Is there another customer who might be ordering more than $7b of chips from them annually? I believe Samsung fabs their own processors, so I’d assume it’d need to be a Chinese OEM?
- anoncareer0212 6y agoYes, yes, no
- karmakaze 6y agoGiven more than 5 customers would put them in the top 3.
- nabla9 6y agoIt appears that Nvidia produces all Ampere GPUs in Samsung's 8nm process. Company with the highest profit margin can pay most, so Apple gets first choice.
- en4bz 6y agoThe A100 is on TSCM 7nm.
- mattl 6y agoWhy can’t/doesn’t Apple buy TSMC entirely?
- asperous 6y agoCould be a couple reasons, but one I see is that they too expensive for Apple to do so. Apple also isn't the type to manufacture chips for other companies which is a lot of TSMC's revenue (this article is only for one size). So they would be taking a huge loss in value just to have control. Much more likely for Apple is to try and create their own manufacturing lines.
- DuskStar 6y agoI'd bet on "Taiwan would block it". If Apple bought TSMC, they'd probably want to diversify production locations away from a geopolitically interesting island. But having TSMC there makes it a lot more likely for people to come to the defence of the island in the case of war...
- wonnage 6y agoIt's also not in Taiwan's interest to align too close to the US. The bulk of Taiwan's exports are to China, and they stand to lose the most in the trade war if the US attempts to ban business with more Chinese companies. We can't realistically defend them in a hot war either. The Taiwanese notably are framing the Huawei issue as a ban on a specific company rather than trade with China in general [1]. Whether that continues to be true might hinge on November... 1. https://www.reuters.com/article/us-taiwan-economy/taiwan-minister-says-tsmc-has-offset-lost-huawei-orders-idUSKBN23T1E3 https://www.reuters.com/article/us-taiwan-economy/taiwan-min...
- reincarnate0x14 6y agoIt's less about making people physically send ships and troops to defend them than it is making sure that any attempt by the PRC to invade or blockade them would have crushing effects on the mainland money-train that is the lifeblood of the party.
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- rasz 6y agoCausing an "accident", or just openly invading Taiwan gets better and better deal for China every day.
- ericmay 6y agoI’m not sure why you are suggesting this, and I am very certain that behind the rhetoric China has no interest in invading Taiwan right now unless they want to guarantee that Trump gets re-elected and raise the possibility of a hot conventional war with the United States and maybe regional allies. Not to mention the potential for millions of people to die... because of TSMC.
- redis_mlc 6y ago> China has no interest in invading Taiwan right now CCP has a policy of reuniting Taiwan with the mainland. If they could do it today, they would. > Not to mention the potential for millions of people to die Chinese premiers have stated they would sacrifice half their citizens if necessary. In fact, they are sacrificing whole towns during the current floods to save various dams, reservoirs and cities, flooding them at nite to make investigations more difficult to avoid welfare payments. Not sure which imaginary China you're talking about.
- zepto 6y agoDo you have a reference for “Chinese premiers have stated that they would sacrifice half their citizens if necessary”? I don’t mean this as a ‘citation needed’ dismissal. I’d like to learn more about when such a statement was made.
- bmarquez 6y agoNot the original poster but remember hearing something very similar over a decade ago, and I haven't forgotten the statement: "If the Americans are determined to interfere [in a confrontation over Taiwan] we will be determined to respond,” said Gen Zhu, who is also a professor at China's National Defence University. "We will prepare ourselves for the destruction of all of the cities east of Xian." The source link is still online 15 years later: https://www.ft.com/content/28cfe55a-f4a7-11d9-9dd1-00000e2511c8 https://www.ft.com/content/28cfe55a-f4a7-11d9-9dd1-00000e251...
- Traster 6y agoI'm not a big fan of this article. It doesn't 'work out well for everyone' that AMD are a node behind Apple. In fact with Apple moving into more general compute I would say it's less 'work out well for everyone' and more 'existential threat'. Also, the shift from desktop CPUs to mobile CPUs as leading the shift to smaller nodes sounds less like a massive revelation, and more like the innevitable result of mobile CPUs out-stripping traditional CPUs in volume & margin.
- uluyol 6y agoMost companies wait until a node matures / a second gen version is offered. Defect rate for example can be high which makes it too expensive to use for larger processors.
- SllX 6y agoAs mentioned in other comments, Apple works out deals with some of their suppliers where they will purchase or help purchase the equipment and book its future production. If it’s the same type of deal here, then this is Apple putting their money where their mouth is. If it makes sense for other companies to adopt these kinds of financial arrangements, they will eventually, and while it works out best for Apple here, at this particular point in time, this is just one point in time. It does benefit others in the long run as TSMC is able to refine their process fabbing chips for Apple and will be able to open new production lines in the future with the profits from manufacturing for Apple and offer those to their other customers. AMD is still doing really well in the market, and their customers are different and their more direct competition is Intel and NVIDIA. Could they make better products on a 5nm process size? We assume they can and will, maybe that will happen a little later than they would like, or maybe they’re working behind the scenes and making their own deals with other manufacturers that we don’t know about yet. This isn’t the bad old days where Intel was completely dominant, competition actually is good here. Apple is ahead right now, but that’s a temporary situation much like anything else.
- teruakohatu 6y agoThe rumors were that 5mn was going to take a lot of work and so AMD delayed until their following CPU architecture iteration Zen4. Now it seems more likely that they were outbid by Apple which is why Zen3 is stuck on the older process. The risk for AMD is if they can get 5mn or equivalent from another fab for Zen4
- GeekyBear 6y agoApple does not want to run it's own manufacturing lines, however they have long been known for buying the manufacturing equipment needed for their manufacturing partners to make exactly the parts they want in the volume they need. For instance, this deal from early in the Tim Cook era: >Apple today announced that it has reached long-term supply agreements with Hynix, Intel, Micron, Samsung Electronics and Toshiba to secure the supply of NAND flash memory through 2010. As part of these agreements, Apple intends to prepay a total of $1.25 billion for flash memory components during the next three months. https://www.apple.com/newsroom/2005/11/21Apple-Announces-Long-Term-Supply-Agreements-for-Flash-Memory/ https://www.apple.com/newsroom/2005/11/21Apple-Announces-Lon... If you go back to the time when Apple was looking at single sourcing their SOC production at TSMC you'll find some interesting comments in the press. >The world's leading foundry chip maker Taiwan Semiconductor Manufacturing Co. Ltd. is considering operating single-customer wafer fabs, according to chairman and CEO Morris Chang. Chang, speaking to analysts on a conference call to discuss the company's second quarter financial results, said that the market is tending to produce fewer higher volume customers and some are so large they need their own dedicated fabs. https://web.archive.org/web/20120728040723/https://www.eetimes.com/electronics-news/4391104/TSMC-says-single-customer-fabs-make-sense https://web.archive.org/web/20120728040723/https://www.eetim...
- bigiain 6y ago> Apple does not want to run it's own manufacturing lines, however they have long been known for buying the manufacturing equipment needed for their manufacturing partners to make exactly the parts they want in the volume they need. I vaguely recall a story about them buying a controlling stake and the entire production output of the only company capable of making the machine tools to make the aluminium unibody Macbook cases (and maybe also the laser tooling that punches the holes in them for the status LED t shine through)...
- raihansaputra 6y agoI'm not sure it's the entire output, but AFAIK Apple is the buyer/owner of the largest fleet of high-precision CNC machines (Haas?), solely for the purpose of manufacturing unibody MacBook cases. One time I found the operator's website, a nondescript Taiwanese company that's responsible for all Apple cases. Again this is off the top of my head.
- brian_herman 6y agoThis explains why Samsung was used in the 3080 released by NVidia.
- boardwaalk 6y agoThat's probably better explained by TSMC 7nm capacity rather 5nm capacity. I'm sure Nvidia would have preferred even TSMC 7nm over Samsung 8nm.
- kllrnohj 6y agoNvidia used TSMC 7nm for the first Ampere chip, the GA100 used in the HPC-focused A100. The density vs. the Samsung 8nm manufactured GA102 in the RTX 3090 & 3080 is drastic. 65.6M / mm² vs. 45.1M / mm². Either Samsung gave Nvidia a hell of a deal or TSMC's 7nm was booked up.
- tutanchamun 6y agoCould also be a bit of both. But I wouldn't be surprised if it's mainly Samsung giving Nvidia a great deal. For years it's all over town that Samsung seems to have the best wafer prices in the industry.
- philjohn 6y agoIsn't the rumour that they went to TSMC and "balked" at the price - dangling how much cheaper Samsung would offer their fab capacity, demanded a discount and were told to go whistle since TSMC already has enough customers to run their foundries at 100%?
- MichaelZuo 6y agoListing all the marketing numbers without mentioning the actual feature size, or densities, of the processes in the comparison isn’t a good practice. For example, TSMC 5nm is far less than 4 times the density of Intel’s 10nm. Even though a credulous reader might assume so. It is fascinating to consider that Apple has enough pull in Taiwan to get exclusivity on their most advanced technology.
- jassany 6y agoWell I mean all it takes is a better offer, and all you need for that is more money. Wouldn't necessarily call it influence but yeah, it's still crazy either way.
- MichaelZuo 6y agoTSMC isn’t a purely monetary profit driven company, though your right usually they do business as if they were. Because 100% of something is much different than 99% in B2B and at this scale. Though of course TSMC is a bit special because they are comfortably ahead on something that the only possible competitors are even more unlikely to do exclusivity.
- postalrat 6y agoSelling products made with that technology is what drives the technology further.
- philliphaydon 6y agoUntil Intel has real products talking about their 10nm is pointless. Intel for the first time has nothing. So tsmc’s 7/5nm is superior is every way.
- tpurves 6y agoSensationalized article. The real story looks like all of TSMCs 5nm capacity for 2020 is booked by Apple, not all 5nm for all time. That said, TSMC is the world leader in process these days, and cimoetion between customers has been fierce to book it. But if there was any serious risk AMD could be shut out for all time from 5nm you would have heard about that at their last investor call, not from an enthusiast website. Here’s what seems to be the original source? https://www.digitimes.com/news/a20200917PD210.html https://www.digitimes.com/news/a20200917PD210.html
- megablast 6y agoThis is huge. Why pretend it isn’t??
- phkahler 6y agoIts not huge. Apple booked all of TSMCs 5nm production for the next 3 months. They are still ramping up the process too. Apple is going first. Interesting but not huge.
- ashtonkem 6y agoI keep forgetting that we’re running out of 2020.
- kergonath 6y agoIt is huge. It's not the end of the world for anyone.
- ksec 6y agoRemember Apple are about to ship 50M+ A14 in the next quarter of course it is going to be fully booked. And TSMC has been producing them since May / June. These sort of headlines make people think Apple is taking over all the capacity and AMD / Nvidia cant gain much from it. And it will inevitably lead to either blaming TSMC or Apple. Which I know it would be something the Samsung PR / Marketing team likes to play with once their Foundry business is up to scratch. The age of Internet.
- bbx 6y agoNitpick: I’m annoyed at sentences that capitalises every word just to make them look more important than they are. I was wondering what Apple Books (the app) was doing, and what the verb in the sentence was. Is there a name for this capitalisation trend?
- tlarkworthy 6y agoTitle casing?
- __alexs 6y agoIt's called Title Case. It's been popular in the US for decades. In the UK we often just use sentence case for titles.
- thomasahle 6y agoIt would be nice for HN to have a consistent style actually. I vote for sentence case.
- HeWhoLurksLate 6y agoThAt WoUlD bE nIcE, wOuLdN't It? i VoTe FoR cAmEl CaSe BeCaUsE iT's A bUiLt-In GaTeKeEpEr. /S Frankly, it's still much much better than most other social media platforms out there in terms of thought put into sentences.
- bbx 6y agoThanks, that’s it. I’m very annoyed by it because in the English language there is little distinction between the subject, object, and verb versions of a word. So the same sentence can be read in multiple ways. This title casing makes it even harder.
- deleted 6y ago[deleted]
- amelius 6y agoMakes me wonder, why doesn't TSMC demand 30% of Apple's profits? :)