TSMC: Full Load on 5/4nm, 2nm Risk Production in Q4

The semiconductor supply chain reports notable advancements from TSMC (Taiwan Semiconductor Manufacturing Company), showcasing a comprehensive recovery in existing process capacity utilization and exceeding expectations in the 2nm process. In the first quarter, TSMC demonstrated a gradual recovery in the utilization rate of 8-inch production capacity, with the 12-inch production utilization rate surpassing 80%, particularly for the 5/4nm processes.

The 3nm production capacity, priced at nearly $20,000, experienced a substantial increase from 75% at the end of 2023 to an impressive 95%. The first quarter's monthly production capacity reached 100,000 units ahead of schedule.

Supply chain sources reveal that TSMC's smooth progress with the 2nm process positions the Baoshan P1 plant for risk production commencement in the fourth quarter of 2024, followed by mass production in the second quarter of 2025. Apple remains the primary customer for this process, and collaborations extend to industry leaders such as Intel, MediaTek, Qualcomm, AMD, and NVIDIA.

As part of TSMC's commitment to enhancing 2nm chip capacity, the company is strategically employing GAAFET or fully-depleted field-effect transistors with nanosheets, steering away from FinFET. Despite the intricacies of this production process, it promises smaller transistor sizes and lower power consumption.

Further reports suggest that Apple is poised to adopt the 2nm process technology in 2025 for chip production in the iPhone 17 series, with potential applications for M-series chips in Mac devices. TSMC's ongoing research and development efforts also include the exploration of 1.4nm process technology, with an expected release in 2027, possibly making Apple the inaugural customer for TSMC's groundbreaking 1.4nm technology.