M5 Announcement Expected This Week: Chipset Fabrication on TSMC’s 3nm ‘N3E’ Process Instead of N3P

Apple is poised to unveil three new products this week, featuring its latest System-on-Chip (SoC), the M5. This new chip is set to succeed the M4, although specific details about its capabilities remain limited. Initial insights, including an unboxing video of the upcoming iPad Pro, only highlighted minor differences between the generations of the tablet. It was widely assumed that the M5 would leverage TSMC’s advanced 3nm ‘N3P’ architecture, already utilized in the A19 and A19 Pro processors. However, reports suggest that Apple might continue using the older 3nm ‘N3E’ technology for the M5.

Cost Considerations and Competitive Landscape

According to a report from Commercial Times, there are significant updates regarding various Apple Silicon developments, including the anticipated M6, which is set to be the company’s first 2nm SoC for upcoming MacBooks. For now, let’s focus on the M5. It is somewhat perplexing that Apple, along with competitors like Qualcomm and MediaTek, is reportedly opting for the older 3nm technology, especially when others are transitioning to TSMC’s more advanced ‘N3P’ process. Both the Snapdragon X2 Elite and Snapdragon X2 Elite Extreme have utilized this new technology, raising questions about why the M5 could lag technologically behind its contemporaries.

One possible explanation for this decision could be the recent price increase imposed by TSMC for its 3nm N3E and N3P wafers, with costs reaching $25, 000 and $27, 000 per unit respectively. As the M5 Pro and M5 Max are not expected until 2026, it seems a strategic choice for Apple to adopt an older manufacturing process to keep expenses under control. However, given Apple’s historical penchant for innovation, there remains a possibility that this report is based on inaccuracies, as the company typically doesn’t settle for less than cutting-edge technology.

Apple’s Commitment to Innovation and Cutting-Edge Technology

We suspect that Commercial Times may have made a significant mistake regarding the lithography details of the M5. Our reasoning supports this claim for two key reasons. Firstly, despite any criticism of Apple for not always adopting the latest standards, the company has consistently demonstrated a commitment to leveraging cutting-edge technologies. For instance, the launch of the A17 Pro and subsequent M3, M3 Pro, and M3 Max chipsets all utilized TSMC’s advanced 3nm ‘N3B’ process, which was notably ignored by competitors opting for 4nm solutions instead.

This strategic selection not only showcases Apple’s technological ambition but also entails hefty costs, with tape-out expenses for the M3 series alone estimated at approximately $1 billion. Clearly, Apple prioritizes investing in top-tier lithography processes for its silicon production.

In conclusion, the mass production of the M5 using the older ‘N3E’ process appears misaligned with Apple’s established practices. Given that Apple recently adopted the newer 3nm ‘N3P’ technology for its A19 and A19 Pro chips, it seems far more plausible that the successor to the M4 will reflect a similar commitment to advanced manufacturing processes.

Source & Images