Taiwan Semiconductor Manufacturing Co. (TSMC) will ramp Apple’s A17 and M3 processors at the N3 node according to Mehdi Hosseini, senior equity research analyst with Susquehanna International Group.

TSMC CEO C.C. Wei said in a recent conference call with analysts: "Our 3nm technology is the first in the semiconductor industry to high-volume production with good yield. As our customers’ demand for N3 [TSMC terminology for 3nm] exceeds our ability to supply, we expect N3 to be fully utilized in 2023, supported by both HPC and smartphone applications."

Arete Research's Brett Simpson told the EE|Times that "At present, we believe N3 yields at TSMC for A17 and M3 processors are at around 55% [a healthy level at this stage in N3 development], and TSMC looks on schedule to boost yields by around 5+ points each quarter."

Simpson added that Apple will pay TSMC for known good die rather than standard wafer prices, at least for the first three to four quarters of the N3 ramp as yields climb to around 70%.

There's a lot more to this report from EE|Times that you could review here.

Considering that only Apple's iPhone 15 Pro models will include a 3nm chip, shipments shouldn't be overly affected. It was also reported by MacRumors back in late February that Apple had procured TSMC's entire first run of 3nm chips to ensure supply for the iPhone 15 Pro and possibly new MacBooks.