Tag: 3nm chips

  • TSMC Responds to Escalating Demand by Expanding 3nm Chip Production

    TSMC Responds to Escalating Demand by Expanding 3nm Chip Production

    TSMC, the world’s leading chipmaker, is reportedly ramping up production of its advanced 3nm chips. The expansion is said to be done due to the increased demand from tech giants seeking cutting-edge processors for their products.

    Increased Demand for 3nm Chips

    In 2023, Apple was TSMC’s primary customer for 3nm chips, utilized in its iPhone 15 Pro smartphones. However, major players like Qualcomm, MediaTek, NVIDIA, and Intel have since expressed interest and placed orders.

    Meeting the Demand

    To accommodate this influx, TSMC is reportedly eyeing to boost its monthly 3nm wafer production to 100,000 units by 2024. The company is also making efforts to improve its production yields for higher efficiency.

    Improved Second-Generation Process

    The initial version of TSMC’s 3nm process (N3B) reportedly faced yield challenges and carried a high cost. These factors may have deterred some companies from adopting the technology in its early stages. However, TSMC’s improved second-generation 3nm process (N3E) will offer better performance while being affordable. This has likely led to an increase in client interest, which in turn means demand.

    This year will likely see heightened competition in the semiconductor market as major tech companies begin releasing their first 3nm-powered devices.

    Whether TSMC can successfully meet this surging demand, while addressing potential production challenges, will significantly impact the success of these upcoming devices and the companies behind them.

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  • Tesla’s Revenue Prospects to be Boosted as it Plans to Incorporate TSMC’s 3nm Chips by 2024

    Tesla’s Revenue Prospects to be Boosted as it Plans to Incorporate TSMC’s 3nm Chips by 2024

    Tesla has announced that it will be participating in TSMC’s 3nm NTO chip design finals in the coming year. This move aligns with TSMC’s plans to ramp up its 3nm chip production in 2024 to meet the increasing demand for advanced semiconductor solutions. The inclusion of Tesla as an N3P customer indicates the company’s intention to utilize TSMC’s cutting-edge technology for the production of next-generation Full Self-Driving (FSD) smart driving chips.

    TSMC’s N3P Process

    TSMC has ambitious plans for its N3P process, which is set to begin production in 2024. Compared to the N3E process, N3P aims to achieve a 5% improvement in performance, a 5% to 10% reduction in power consumption, and a significant 1.04 times increase in chip density. TSMC has highlighted that N3P’s performance, power, and area (PPA) metrics, along with its technological maturity, surpass Intel’s 18A process.

    Tesla’s Ongoing Collaboration with TSMC

    This collaboration between Tesla and TSMC is not new, as the electric vehicle manufacturer has previously placed multiple orders with the semiconductor company. These past ventures include the Dojo D1 chip, which utilized the 7nm process, and the HW 4.0 chip, featuring the 5nm process. The addition of Tesla to the N3P customer list signifies a strategic move for both companies.

    Impact on Tesla and TSMC

    Industry analysts predict that this partnership will elevate Tesla to become TSMC’s seventh-largest customer, injecting fresh momentum into TSMC’s revenue growth trajectory. As Tesla continues to lead the automotive industry in innovative technologies, its collaboration with TSMC underscores the crucial role that semiconductor advancements play in shaping the future of electric and autonomous vehicles.

    In conclusion, Tesla’s confirmation of its participation in TSMC’s 3nm NTO chip design finals for the upcoming year highlights the growing demand for advanced semiconductor solutions. The collaboration between the two companies signifies Tesla’s intent to leverage TSMC’s cutting-edge technology for the production of next-generation FSD smart driving chips. This partnership is expected to propel Tesla to become one of TSMC’s top customers, further solidifying its position as a leader in the automotive industry.

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