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"Takes the risks" Takes what risks ? Buying the riskless new transistors that TSMC puts out because they know that they work ? Apple taking risks would be mak
by ohgodplsno 4y ago
"Takes the risks"
Takes what risks ? Buying the riskless new transistors that TSMC puts out because they know that they work ?
Apple taking risks would be making the chips themselves (see: the failure that was itanium and how it screwed Intel because they had to reorganize their facilities for it), not buying it wholesale and just having TSMC print it.
- klelatti 4y agoThe risk that TSMC doesn't deliver on node improvements / deliver the relevant SoCs in the required numbers. And if you think that risk is small / nil I would point you to Intel's recent track record. And just to point out that Apple actually does bear the risk you've highlighted as Itanium was a design (which Apple does) not a manufacturing failure.
- lotsofpulp 4y agoThere is also risk that sufficient consumers do not want to buy Apple’s products at a sufficient price premium to offset the price premium that Apple paid to TSMC.
- klelatti 4y agoGood point!
- ohgodplsno 4y ago
- wmf 4y agoFor a specific recent example of this risk we can look at Nvidia who put down huge deposits for N4 wafers and now doesn't have enough customer demand for those chips.
- ohgodplsno 4y ago
- colinmhayes 4y ago> Oh no, the company that never failed a delivery might fail the delivery! Such a risk You could say the same thing about Intel until they blew it with 10nm. Who knows what the future holds
- klelatti 4y agoExactly. Also blaming Intel's process problems on Itanium (discontinued 2011) is - well an interesting perspective!
- deleted 4y ago[deleted]
- Tagbert 4y agoOne risk comes from the long lead times of chip design and production. They are committing to a design and process and hoping that production can occur on time and in the right volume to meet there needs. That is not a certainty and a delay could be very expensive since product releases are tied to the new chips.