There's not really a reason to port A16 to 3nm to make the M3. It's expensive to take the same chip and port it over to a completely new node.
It costs substantive money , but the notion that it is extremely expensive is likely overblown. Intel's whole tick=tock strategy that worked extremely well was based on making major changes to architecture on the 'tock' iteration and primarily doing a die shrink on the 'tick' iteration. It is actually more expensive to do
BOTH at the same time. Sure Intel snuck in minor arch changes on the 'tick' iterations sometimes. ( on integrated GPU cores where they were way behind, they sometimes did more than minor changes. )
TSMC has lots of new stuff in it. FlexFin didn't exist in previous iterations. The design tools needs to be adjusted to adapt to the substantively new paradigm.
Making something that works go faster is less risky and error prone than makes something new at the same time adjusting to a bleeding edge process. Multiple dimensions in motion at the same time is typically more expensive because errors in one dimension tend to propagate impacts into the other.
Why not just use A17, which is already a 3nm design? It seems easier to port A17 from N3B to N3E. Or, Apple could stay on N3B for M3 generation using the A17.
The notion that 'use the A17' is wrong. The A17 uses subsystems of cluster components. P core clusters, E core clusters, memory controller subsystems ,etc. Collectively those can compose an A17 , but they are independent of the A17.
N3B and N3E have different design rules, but yes it would like a Intel 'tick' iteration .... only going 'backwards' and making the die bigger ; not smaller. It is a port and rumors suggest that Apple is doing to do that 'inside' the A17 lifecycle. A while back Apple did a A-series chip at both Samsung and TSMC and the sky didn't fall in. That would be roughly similar ( same baseline design layout out on two different processes ). But the A-series has different unit volumes and potentially much longer lifecycles ( more products to 'hand me down' into. iPad , AppleTV , etc. If need an A17 in 3 years for a 'new' product then N3E would be your only option. )
Either the M3 series got throughly screwed on roll out time length and Apple took it straight to N3E , or the usage for M3 will be the last gasp of N3B ( In the second case , I suspect Apple will skip it for the iPad Air and any other 'long delay' hand-me-down product. Most M-series SoC disappear after they are replaced. No place else for M1 Pro / Max / Ultra to do other than the principle leading edge Macs they go into. ).
A17 has the unit volume to amortize a midlife redesign cost. The M-series really does not and there are a lot more dies to 'redesign'. Either Apple was too far along into N3B so they don't have an option. Or they blew up the timeline completely and there is a relatively long delay coming, but the M3-N3E would likely ship before A17-refresh-N3E. Apple wouldn't have to wait for the A17-Refresh to ship.