TSMC's 3rd-Gen 3nm N3P Set for Mass Production in 2024

In Q4 2023, TSMC achieved a significant milestone by successfully initiating production using its second-generation 3nm (N3) process technology. The company is now set to commence high-volume production (HVM) of the performance-enhanced N3P chips in the second half of 2024, as announced at the European Technology Symposium.

The N3E process has also entered mass production as scheduled, with defect densities comparable to the N5 process that was mass-produced in 2020. TSMC has reported "excellent" yields for N3E. Currently, the Apple M4 processor is the only processor utilizing the N3E process. Compared to the N3-based M3, the M4 significantly increases transistor count and clock speed.

A TSMC executive remarked, "N3E went into mass production as planned in the fourth quarter of last year. We've seen outstanding yield performance in customer products, enabling them to meet their market entry schedules."

Key details of the N3E process include its simplification relative to TSMC's first-generation N3 process (N3B). By reducing the number of layers requiring EUV lithography and avoiding EUV double patterning, N3E lowers production costs, expands the process window, and improves yield. These changes, while sometimes reducing transistor density and power efficiency, can be mitigated through design optimizations.

Looking ahead, the N3P process offers an optical shrink of N3E and shows promising progress. It has achieved the necessary qualifications and exhibits yield performance close to N3E. The next evolution in TSMC's technology portfolio aims to improve performance by up to 4% or reduce power consumption by approximately 9% at the same clock speed, while increasing transistor density by 4% for hybrid design configuration chips.

N3P maintains compatibility with N3E's IP modules, design tools, and methodologies, making it an attractive option for developers. This continuity ensures that most new chip designs can transition from N3E to N3P, leveraging its improved performance and cost-efficiency.

Final preparations for N3P production are expected to conclude in the second half of this year, with HVM set to begin shortly thereafter. TSMC anticipates immediate adoption by chip designers, driven by N3P's performance and cost advantages. Key TSMC customers, including Apple and AMD, are expected to favor N3P.

While the exact timeline for the market release of N3P-based chips remains uncertain, it is anticipated that major manufacturers like Apple will incorporate this technology in their 2025 processor lineups, including SoCs for smartphones, PCs, and tablets.

"We have successfully delivered N3P technology," stated a TSMC executive. "It has been qualified, with yield performance close to N3E. We have already received product customer tape-outs and will start production in the second half of this year. Given the PPA advantages of N3P, we expect most tape-outs on N3 to transition to N3P."