Quote Originally Posted by zerazax View Post
Well if that were true, then say a company orders a ridiculously sized chips and only pays for the good ones... how would TSMC make any money if yields were terrible?

I'm sure they have some contract down for both sides. Because after all, both sides are responsible for yields. TSMC for making sure the process is low in defect / area and also Nvidia for making sure the design is feasible for reasonable yields. Likeliest what happens is that TSMC sets a price for a wafer and the process (often a bulk discount as well given that Nvidia is buying many of these) probably with contract terms to ensure that certain defect/cm^2 is below a certain level and so on, but Nvidia is responsible for making sure their design will produce acceptable yields.

After all, if you only had to pay for what was good, then a company could create a ridiculous chip where a 300mm wafer produces one good chip that the company would pay forwhile TSMC eats the rest of the cost of the wafer. I doubt that's what happens or else TSMC would be in big financial trouble.
That makes much sense, and thanks for replying.

Still, TSMC can refuse the job and aren't forced to anything, and I have always thought there are initial trials before any contract is sealed? Tests are being made for both, and a contract is made based upon the results of those.

I have no clue about all of this, of course