TSMC A16 Process Sparks AI Giants' Pre-Orders

TSMC's latest and most advanced A16 (1.6nm) process node has generated significant buzz ahead of its mass production. Industry reports indicate that Apple, a key client, has already reserved the initial capacity for TSMC's A16 process. Additionally, OpenAI, a leading AI company, has also placed orders for the A16 process, driven by its long-term demand for custom AI chips. This move positions OpenAI as a major player in extending the visibility of TSMC's AI-related orders.

On August 30th, TSMC commented on the matter, stating that it does not address market rumors or discuss business with individual clients.

According to industry sources, while TSMC's A16 process has not yet reached mass production, its initial clients have already been identified. In a notable development, alongside Apple's ongoing collaboration with TSMC, OpenAI, the developer of ChatGPT, has emerged as a new prominent player in the AI sector, actively investing in the design and development of its own ASIC chips.

Sources reveal that OpenAI initially explored the possibility of partnering with TSMC to build a dedicated wafer fabrication plant. However, after assessing the potential benefits, OpenAI decided to pause plans for a dedicated facility. Instead, the company is collaborating with American firms like Broadcom and Marvell to develop its ASIC chips. OpenAI is expected to become one of Broadcom's top four clients.

Both Broadcom and Marvell are long-standing clients of TSMC. The ASIC chips developed through these collaborations with OpenAI are planned to be produced using TSMC's 3nm process family and the forthcoming A16 process, as outlined in their respective chip design roadmaps.

OpenAI is not only central to the advancement of AI applications but also supports AI feature development in Apple devices. In June, Apple launched its personalized intelligent system, Apple Intelligence, which integrates ChatGPT. This collaboration highlights OpenAI's crucial role in Apple's AI strategy. With OpenAI's ongoing investment in its own ASIC chip design and development, it is expected to maintain a strong influence in the field of AI computing.

The A16 process node represents TSMC's most advanced semiconductor technology to date and marks the company's entry into the 1.6nm era. It is scheduled for mass production in the second half of 2026, with initial manufacturing taking place in Taiwan.

TSMC has announced that the A16 will utilize next-generation nanosheet transistor technology and feature its innovative Super Power Rail (SPR) technology. SPR is a groundbreaking backside power delivery solution, setting a new industry standard as the first of its kind.