TSMC, the world’s leading chipmaker, is ramping up its production of advanced 3nm chips to meet the growing demand from major tech players. Initially, Apple was TSMC’s primary customer for these cutting-edge processors, specifically for its iPhone 15 Pro smartphones. However, other industry giants like Qualcomm, MediaTek, NVIDIA, and Intel have also expressed interest and placed orders.
To accommodate this surge in demand, TSMC has set a target to increase its monthly 3nm wafer production to 100,000 units by 2024. Additionally, the company is focusing on improving production yields to enhance efficiency. The first iteration of TSMC’s 3nm process, known as N3B, faced challenges with yields and incurred high costs, which may have deterred some companies from adopting the technology early on. However, TSMC’s second-generation 3nm process, N3E, offers better performance at a more affordable price point, leading to increased client interest and subsequent demand.
The semiconductor market is expected to witness intensified competition this year as major tech companies prepare to launch their first devices powered by 3nm chips. The ability of TSMC to effectively meet the escalating demand while addressing potential production hurdles will significantly influence the success of these forthcoming devices and the companies behind them.
In related chip news, SMIC, China’s semiconductor giant, has reportedly begun production of its 5nm chipsets for Huawei. SMIC has also established a new semiconductor line in Shanghai dedicated to manufacturing chips designed by Huawei. This move aligns with the Biden administration’s imposition of stricter export restrictions on advanced chipmaking equipment, citing national security concerns.
Overall, the increased production of 3nm chips by TSMC and the developments in the chip market underscore the rapid advancements in semiconductor technology and the growing importance of these chips in powering the next generation of devices.
