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.
