TSMC Boosts 3nm Orders, Aims for 80% Capacity by 2024

In a groundbreaking development, Taiwan Semiconductor Manufacturing Company (TSMC) commenced the production of 3nm chips in December 2022, signaling a major stride in semiconductor technology. The latter half of 2023 is poised for the exclusive debut of Apple's A17 Pro and M3 chips, leveraging TSMC's state-of-the-art 3nm process. Projections indicate a substantial increase in the adoption of TSMC's cutting-edge technology in 2024, with an anticipated 80% capacity utilization later in the year. TSMC, having secured additional 3nm orders beyond Apple, is set to play a pivotal role in shaping the semiconductor landscape.

Anticipating widespread adoption, the report underscores the potential of TSMC's second-generation 3nm process, known as N3E, gaining traction by 2024. Noteworthy is Apple's distinction as the sole company with the financial prowess to acquire the first-generation N3B wafers. As TSMC addresses manufacturing challenges, enhances yields, and introduces more cost-effective 3nm variants, numerous companies are poised to embrace this cutting-edge technology.

Major players, including Qualcomm, are expected to integrate the N3E process into their Snapdragon 8 Gen 4 SoC, while MediaTek plans to leverage it in the upcoming Dimensity 9400 chipset. Apple, a continued collaborator, is reported to persist in employing TSMC's 3nm process for the M3 Ultra chip and the A18 Pro SoC in the iPhone 16 Pro. Additionally, heightened anticipation surrounds AMD's Zen 5 CPU, RDNA 4 GPU, and NVIDIA's Blackwell server GPU, all of which are projected to capitalize on TSMC's 3nm technology in the near future.

The report sheds light on TSMC's initial projection in January 2023, anticipating a "smooth growth" in its 3nm node as yields improved. However, this projection did not materialize as Apple remained the exclusive customer for the advanced process throughout the year. TSMC's strategic focus for 2024 is to elevate the production output of 3nm chips. Recognizing the potential impact of sluggish growth in 3nm capacity, the report forecasts a 10% decline in TSMC's annual revenue. TSMC remains committed to promptly enhancing its production capabilities to mitigate this impact and reinforce its leadership in semiconductor innovation.