Introduction
Taiwan Semiconductor Manufacturing Company (TSMC) is experiencing unprecedented demand for its 3nm process technology, reaching full capacity as major tech giants like Intel and Apple prepare to launch their latest products.
The heightened interest from these key customers is set to drive significant revenue growth for TSMC, reinforcing its position as a leading semiconductor manufacturer.
Overview
- Full Capacity Utilization: TSMC’s 3nm manufacturing process is operating at 100% capacity due to high demand from Intel, Apple, Qualcomm, and MediaTek.
- Impact of Intel and Apple: Intel’s Lunar Lake Core Ultra 200V chips and Apple’s iPhone 16 are both set to leverage TSMC’s advanced 3nm technology.
- Revenue Impact: The 3nm process contributed 15% to TSMC’s revenue in Q2 2024, with expectations for substantial growth in the latter half of the year.
- Upcoming Releases: Qualcomm and MediaTek will also launch new 3nm chips in October 2024, further fueling demand.
- Future Prospects: TSMC is preparing for continued growth with its 3nm, 5nm, and 7nm processes and anticipates price increases with the introduction of 2nm technology in 2025.
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TSMC’s 3nm Process Hits Full Capacity
TSMC’s 3nm manufacturing process is in high demand, operating at full capacity as the company prepares for an influx of new product releases.
This high utilization is driven by major tech players such as Intel, Apple, Qualcomm, and MediaTek, all of whom are incorporating TSMC’s advanced technology into their upcoming products.
The surge in demand highlights the critical role of TSMC’s 3nm process in powering the latest generation of electronics.
This process allows for the production of smaller, more efficient chips that are essential for high-performance computing, advanced graphics, and next-generation mobile devices.
Intel’s Lunar Lake Chips Set to Launch
Intel is set to make a significant impact with its upcoming Core Ultra 200V series, codenamed Lunar Lake.
This new line of processors, manufactured using TSMC’s 3nm technology, features advanced compute and platform control tiles.
The compute tile includes new E-cores and P-cores, designed for enhanced performance and efficiency. It also integrates Intel’s latest Xe2 GPU architecture and a new NPU 4 for advanced AI processing.
The platform control tile, produced on TSMC’s 6nm process, incorporates the latest communication standards, including Wi-Fi 7, Bluetooth 5.4, PCIe Gen5, and Thunderbolt 4.
This combination of technologies positions Intel’s Lunar Lake as a high-performance option in the competitive CPU market.
Apple’s iPhone 16 Boosts 3nm Demand
Apple, a key customer of TSMC, will drive more demand with the iPhone 16 series launching on September 10, 2024.
After the success of the iPhone 15 Pro and other 3nm devices, the iPhone 16 will fully use TSMC’s 3nm technology.
This new launch will significantly impact TSMC’s revenue. Apple’s large market share and the iPhone 16’s expected popularity are key factors. The device will benefit from the enhanced performance and efficiency offered by TSMC’s advanced manufacturing process.
Qualcomm and MediaTek Join the 3nm Race
In addition to Intel and Apple, Qualcomm and MediaTek are set to release their own 3nm chips in October 2024.
Qualcomm will unveil the Snapdragon 8 Gen 4 at its Snapdragon Summit from October 21-23. MediaTek is also set to launch the Dimensity 9400. Both companies will use TSMC’s 3nm technology to improve their mobile and AI chips. These new releases will further boost TSMC’s high capacity utilization, highlighting the wide appeal of its advanced technology.
Future Outlook: 2nm and Beyond
Looking ahead, TSMC is preparing for continued growth with its 3nm, 5nm, and 7nm processes.
The company is also gearing up for the introduction of its 2nm technology, which is expected to enter mass production in late 2025.
This next-generation process will likely come with higher price points but promises even greater performance and efficiency improvements.
TSMC’s ongoing expansion and technological advancements ensure its leadership in the semiconductor industry.
The company’s monthly 3nm wafer production will expect to increase from 100,000 to 125,000 wafers. TSMC’s new 2nm fabs in Tainan Science Park and Kaohsiung will reach a monthly capacity of 120,000 to 130,000 wafers. This expansion will support increased demand for advanced technology. This expansion will support increased demand for advanced semiconductor technology.
Conclusion
TSMC’s 3nm process is operating at full capacity, driven by significant product launches from Intel, Apple, Qualcomm, and MediaTek.
This strong demand is gearing to boost TSMC’s revenue and reinforce its position as a leader in semiconductor manufacturing.
TSMC is gearing for sustained growth with upcoming advancements in 2nm technology. The company also benefits from continued high demand for its 3nm process. These factors position TSMC well for the coming years.
