This kind of deal is quite smart - there is a big incentive for TMSC to increase yields quickly, reducing overall costs all around. This really leverages Apple

This kind of deal is quite smart - there is a big incentive for TMSC to increase yields quickly, reducing overall costs all around. This really leverages Apple's long-term commitments to purchase high-end chips into huge investments into TMSC's manufacturing processes. The economies of Apple's scale are very apparent here!