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TSMC Experiences Strong Demand for 3nm Chips with Orders from Apple, Intel, and AMD: Report
TSMC experiences increasing orders for its 3nm chips from Apple, Intel, and AMD. Revenue share from 3nm chips expected to surpass 20% of total revenue this year. TSMC poised for short-term revenue growth and dominance in the advanced semiconductor manufacturing sector.
Taiwan Semiconductor Manufacturing Company (TSMC), the chip giant, is witnessing a surge in orders for its 3nm chips from its major clients, including Apple, Intel, and AMD, according to a report from Taiwanese media outlet Economic Daily News. TSMC introduced its 3nm process in late 2022, initially having Apple as its sole customer.
However, as production gradually increased, other tech giants joined in. The report states that TSMC's revenue share from 3nm chips is expected to exceed 20% of its total revenue this year, making it the second-largest contributor after its 5nm chips.
This development holds significant importance as TSMC is poised to experience substantial short-term revenue growth and solidify its dominance in the advanced semiconductor manufacturing sector. With increasing orders for its 3nm chips from major clients, TSMC is well-positioned to capitalise on the growing demand for advanced chips.
The Economic Daily News report provides insights into the order status of TSMC's 3nm chips from three key clients: Apple, Intel, and AMD.
- Apple's upcoming iPhone 16 series will feature the new A18 series processor, while the M4 series, the new Mac processor, is expected to launch in the first quarter of 2025. Both of these chips are based on the 3nm process and are scheduled for production by TSMC in the second quarter of this year.
- In the second quarter of 2024, Intel will begin mass production of Lunar Lake CPUs, GPUs, and high-speed Input/Output chips at TSMC. This marks the first time Intel has outsourced its complete range of chips for mainstream consumer platforms to TSMC. The CPU/GPU cores may also adopt 3nm technology, providing TSMC with a new source of orders for its 3nm process this year.
- AMD is set to unveil its new Zen 5 architecture platform, which is expected to significantly enhance AI applications. The report suggests that AMD's Zen 5 architecture, utilising TSMC's 3nm process, is scheduled for release in the second half of 2024.
In the fourth quarter of last year, TSMC's revenue contribution from 3nm chips already reached approximately 15%, driven by the order of the 3nm A17 Pro processor for the Apple iPhone 15 series, as per TSMC's financial reports.
TSMC's dominance in the AI chip market is evident, as it has secured over 90% of the total global AI chip foundry orders. Tech giants such as Nvidia, Google, Intel, Qualcomm, Microsoft, and AMD fiercely compete in this market, according to the Economic Daily News.
An insider from TSMC revealed that the high demand for AI chips and the utilisation of advanced processes like 6nm, 5nm, 4nm, and 3nm will further enhance TSMC's performance. The source claims that TSMC's revenue in 2024 may increase by 24% to 26% year-on-year.
In conclusion, TSMC's strong demand for 3nm chips from major clients like Apple, Intel, and AMD is expected to drive significant revenue growth and solidify its position as a leader in advanced semiconductor manufacturing.
TSMC experiences increasing orders for its 3nm chips from Apple, Intel, and AMD.
Revenue share from 3nm chips expected to surpass 20% of total revenue this year.
TSMC poised for short-term revenue growth and dominance in the advanced semiconductor manufacturing sector.
Source: TECHNODE