Tag: Chip Production Disruption

  • TSMC 2nm Chip Trial Production Starting Sooner Than Expected

    TSMC 2nm Chip Trial Production Starting Sooner Than Expected

    TSMC will commence the trial production of 2nm chips next week, which will initially be used by Apple for the iPhone 17 series and other Apple products. Interestingly, this trial production is starting much earlier than anticipated.

    Initially, the trial production was slated to begin in Q4 (in October or later). This early start is seen as an effort to accelerate production to ensure a stable yield before moving to mass production. For context, trial production is where the company tests out the production line processes that will be used later for mass production.

    TSMC’s 2nm Fabrication Process

    TSMC first showcased its 2nm fabrication process in December last year. The trial production will take place at TSMC’s Baoshan plant in northern Taiwan. The necessary equipment for 2nm production has already been delivered and installed at the Baoshan plant since the second quarter.

    The iPhone 15 Pro models feature the A17 Pro chipset, made using TSMC’s 3nm process. This process allows more transistors to be packed into a smaller space, thereby enhancing performance and efficiency compared to its predecessor. Apple’s M4 chip, which recently launched with the new iPad Pro, uses an advanced 3nm fabrication process.

    Challenges and Future Plans

    Achieving a sufficient yield rate (the percentage of chips that pass quality-control checks) is typically one of the biggest hurdles for new process nodes. For instance, TSMC’s 3nm chips had a yield rate of around 50% back in April last year.

    Apple was previously believed to have reserved the entire production capacity of TSMC’s 3nm chips for the A17 Pro and M3 chip. It may do the same with TSMC for the 2nm production capacity. A report from May last year indicated that the company was working on securing all the production capacity of 2nm chips.

    TSMC plans to use gate all around (GAA) technology starting with the 2nm processes, which will enhance performance and power efficiency. Additionally, TSMC aims to introduce back-side power supply (BSPR) technology with the 2nm chips.

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  • Taiwan earthquake impacts TSMC chip production, prices may increase

    Taiwan earthquake impacts TSMC chip production, prices may increase

    A powerful earthquake recently struck Taiwan, causing concerns within the tech industry regarding potential disruptions to global chip production. The 7.4-magnitude tremor, the strongest in decades for the island nation, led Taiwan Semiconductor Manufacturing Company (TSMC), a major chipmaker, to evacuate some of its factory personnel.

    Chip Shortage Concerns Post Taiwan Earthquake

    While TSMC has confirmed the safety of its workers and initial inspections suggest no significant damage, a comprehensive evaluation is currently ongoing. The company's safety measures prompted evacuations, possibly resulting in production delays.

    This development comes amidst a period where the world is already facing a chip shortage. The COVID-19 pandemic exposed vulnerabilities in the global supply chain, resulting in a shortage of semiconductors essential for various devices, from smartphones to high-performance computers. Any interruptions in TSMC's operations, being the largest contract chipmaker globally, could further stress the already strained supply chain.

    Potential Impact on Tech Giants and Consumers

    The repercussions on leading tech companies like Apple and NVIDIA, which heavily rely on TSMC for their chips, are yet to be determined. Nevertheless, an extended disruption could lead to increased prices for consumers as chip scarcity deepens.

    The earthquake underscores the risks associated with depending heavily on a single region for chip manufacturing. Taiwan's geographic location along a major fault line makes it susceptible to frequent earthquakes. Calls for diversifying manufacturing sites have been strengthening in recent times, particularly given the ongoing tensions between Taiwan and China.

    While the immediate aftermath of the earthquake seems limited, the tech industry closely monitors TSMC's assessment of the situation. Any production setbacks could worsen the existing chip shortage, impacting consumers globally.

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