News TSMC mulls massive 1000W-class multi-chiplet processors with 40X the performance of standard models

gotta imagine the cost for that would be given how high the risk of defects are on such a large one
The cost is not small, but that's because you are buying a whole wafer and it is a unique product. They work around defects by disabling some cores. The unique part is not just the more compact design, but also computational features, such as more bandwidth per operation. This can be a winning point if you compare it to GPUs, but, of course, the higher priced AI GPUs use HBM and negate some of the advantage.

Also, some defects are introduced when the wafer is cut, so using uncut wafer results in smaller defect rate.