TSMC 3nm Apple Chip Price Hits $18,000 per Wafer

Over the past decade, TSMC has played a pivotal role in advancing Apple's chip production, transitioning from 28nm to the latest 3nm technology. According to a report by Tom's Hardware, the price per 3nm wafer for Apple's A17 and A18 chips is $18,000, nearly double the price of similar wafers a decade ago.

TSMC's progress in process technology has set it ahead of the industry, allowing Apple to pay premium prices for its chip production services. This technological advantage has also enabled TSMC to secure nearly all of the chip manufacturing contracts in the market. In a recent report, FX Empire highlighted TSMC as a "major global player," noting its significant role in driving technological advancements in the industry.

Ben Bajarin, CEO and Chief Analyst of Creative Strategies, pointed out that in 2013, TSMC manufactured the A7 chip for Apple using a 28nm process at a wafer price of $5,000. By last year, the A17 and A18 chips were being produced using a 3nm process, with wafer prices reaching $18,000 each.

Over the years, Apple's A-series chips have steadily increased their transistor count. The A7 chip, introduced in 2013, featured one billion transistors, while the A18 Pro chip launched last year boasts an impressive 20 billion transistors. This increase is mainly attributed to the rising number of processor cores and added functionalities.

The size of A-series chips, primarily used in iPhones, has remained between 80 to 125 square millimeters, meaning the transistor density has been continually increasing. Bajarin noted that in the early stages of A-series chip development, particularly with the A11 and A12 models, transistor density grew by 86% and 69%, respectively. However, the increase in density has slowed since the A16 chip.

An FX Empire report stated that TSMC, as the world's leading semiconductor foundry, offers a manufacturing capability that is highly attractive to major tech companies. While these companies design their own chips, TSMC handles the production, making it a key player regardless of which competitor succeeds. The report emphasized that TSMC is not only a critical global enterprise but also a key driver of technological progress.

Over the past year, TSMC's strong fundamentals have earned the company widespread recognition from investors, with its stock price doubling. According to FactSet, TSMC's revenue has grown at an average annual rate of 17% over the past three years, and its earnings per share (EPS) have increased at an average rate of 20%. This year, EPS growth is expected to rise by 30%, further solidifying investor confidence in TSMC's future prospects.