Apple M3 Series Tape-Out Cost Hits $1 Billion, Analyst Says

November 7, 2023
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The M3 series chip from Apple represents the company’s first batch of PC processors produced using TSMC’s latest 3nm technology. According to an analyst’s estimate, the tape-out costs for just the Apple M3, M3 Pro, and M3 Max processors have reached $1 billion.

Apple M3 Series

The analyst, on Digits to Dollars, reveals that Apple has invested $1 billion in tape-out costs for the M3 series chips. This substantial expenditure demonstrates that only a few financially robust companies, such as Apple, are willing to bear such expenses to provide customers with the industry’s best chips.

This may also explain why companies like Qualcomm and MediaTek have not yet transitioned to the 3nm N3B process and may opt for the N3E process instead. In a previous report, we reported that Apple contributed approximately $3.1 billion to TSMC’s 3nm revenue.

However, this doesn’t mean that Apple will bear these costs for customers. The base 14-inch M3 MacBook Pro from Apple starts at a price as high as $12,999 and offers only 512GB of non-upgradable storage. So, in some way, these costs need to be recouped.

Therefore, this investment signifies Apple’s continued commitment to maintaining a leading position in the PC market and continuing to invest in technology.

Read Also: Apple M3 Series Chips Benchmark Scores: Single-Core Performance

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