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> They don't have to buy TSMC a fab They don't have to, but buying production equipment for their manufacturing partners (in return for guaranteed pricing and

> They don't have to buy TSMC a fab They don't have to, but buying production equipment for their manufacturing partners (in return for guaranteed pricing and production levels) is the norm at Tim Cook's Apple.

ksec 5y ago
Is the norm for Tim Cook's Operation ( both before and after Steve Jobs ) at Foxconn. Or more specifically industrial design and manufacturing. Apple dont buy production equipment for TSMC, or Samsung Foundry. Zero.
- mcphage 5y ago
  They also did it for the company in Arizona they hoped would produce sapphire boules for iPhone screens.
  - qeternity 5y ago
    And another company that laser bored small holes in the unibody aluminum cases for LEDs to shine through.
- JiNCMG 5y ago
  They did for the glass manufacturer who built the large panels for the Apple Flagship Store in NYC. They also invested in Corning for building the glass for the iPhone (Tech that Corning shelved for decades).
- simonh 5y ago
  We can’t know for sure, but it’s highly likely they provided heavy capital investmeny to TSMC, and you can bet that came with strings attached. To add to the other examples given here, Apple actually owned the manufacturing equipment for the first generation retina panels, even though it was housed in factories owned and operated by Sharp.
- dkjaudyeqooe 5y ago
  Maybe not literally, but effectively. If Apple's willing to place a cast-iron multi-year order worth tens of billions of dollars with TSMC, the latter is going to go out and build more fabs. Any bank would lend them the money to do so on that basis. Undoubtably that's why Apple gets such preferential treatment from TSMC and other suppliers.
  - robocat 5y ago
    > Any bank would lend them the money to do so on that basis. There is a good chance Apple lent TSMC the money - although the actual transaction would probably not simply be lend at x%, but be designed to be taxation efficient for both parties which might involve other parties or securities.

ksec 5y ago

Is the norm for Tim Cook's Operation ( both before and after Steve Jobs ) at Foxconn. Or more specifically industrial design and manufacturing. Apple dont buy production equipment for TSMC, or Samsung Foundry. Zero.

mcphage 5y ago
They also did it for the company in Arizona they hoped would produce sapphire boules for iPhone screens.
- qeternity 5y ago
  And another company that laser bored small holes in the unibody aluminum cases for LEDs to shine through.
JiNCMG 5y ago
They did for the glass manufacturer who built the large panels for the Apple Flagship Store in NYC. They also invested in Corning for building the glass for the iPhone (Tech that Corning shelved for decades).
simonh 5y ago
We can’t know for sure, but it’s highly likely they provided heavy capital investmeny to TSMC, and you can bet that came with strings attached. To add to the other examples given here, Apple actually owned the manufacturing equipment for the first generation retina panels, even though it was housed in factories owned and operated by Sharp.
dkjaudyeqooe 5y ago
Maybe not literally, but effectively. If Apple's willing to place a cast-iron multi-year order worth tens of billions of dollars with TSMC, the latter is going to go out and build more fabs. Any bank would lend them the money to do so on that basis. Undoubtably that's why Apple gets such preferential treatment from TSMC and other suppliers.
- robocat 5y ago
  > Any bank would lend them the money to do so on that basis. There is a good chance Apple lent TSMC the money - although the actual transaction would probably not simply be lend at x%, but be designed to be taxation efficient for both parties which might involve other parties or securities.