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Growing Demand Drives TSMC To Expand 3nm Chip Production

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Growing Demand Drives TSMC To Expand 3nm Chip Production

(CTN News) – Reports indicate that TSMC, the world’s leading chipmaker, has begun ramping up production of its advanced 3nm chips. It is reported that the expansion has been prompted by the increasing demand for cutting-edge processors from tech giants.

TSMC’s primary customer for 3nm chips in 2023 was Apple, which used the chips in its iPhone 15 Pro smartphone.  The major players have expressed interest in the project and placed orders, however, including Qualcomm, MediaTek, NVIDIA, and Intel.

It is reported that TSMC plans to increase its monthly production of 3nm wafers to 100,000 units by 2024 in order to accommodate this influx. As well as improving its production yields, the company is also striving to increase its efficiency.

TSMC’s first version of its 3nm process (N3B) was reported to have faced yield issues and was quite expensive when first introduced.  A number of these factors may have deterred a number of companies from adopting this technology at the beginning of its development.

TSMC’s next generation 3nm process (N3E) will offer better performance at an affordable price compared to the first-generation 3nm process (N2). In turn, this has probably led to an increase in client interest, which in turn has led to an increase in demand for the services.

Major tech companies are likely to see a heightened level of competition in the semiconductor market this year as they begin releasing their first devices powered by 3nm technology.

In order to ensure the success of the upcoming devices and the companies behind them, it will be crucial that TSMC can successfully meet this surging demand while addressing potential production challenges.

It was reported recently that SMIC, China’s semiconductor giant is beginning production of its 5nm chipsets for Huawei based on its 5nm process technology. Additionally, SMIC has opened a new semiconductor production line in Shanghai designed specifically for the production of chips designed by Huawei.

It should be noted that this move comes as part of the Biden administration’s decision to tighten export restrictions on advanced chipmaking equipment because of national security concerns.

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