Re:Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
by perlgeek on Wednesday September 28, 2022 @12:46PM
(#33010090)
> But TSMC can delay 3nm until it has the clients.
My impression is that they invested huge sums of money into the 3nm lines; you don't want to delay getting returns on such investments.
Considering that capital has a cost, it might be cheaper for them to forego the 6% increase (at least for now) and start returning some of their loans, rather than letting the interest accumulate. (Which Apple knows, of course, which is why they play hardball).
My impression is that they invested huge sums of money into the 3nm lines; you don't want to delay getting returns on such investments.
Considering that capital has a cost, it might be cheaper for them to forego the 6% increase (at least for now) and start returning some of their loans, rather than letting the interest accumulate. (Which Apple knows, of course, which is why they play hardball).