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TSMC's 3nm chip sales expected to account for 4-6% of 2023 revenue

Update time : 2023-10-20 10:24:35

Thanks to orders to produce chips for Apple's iPhone 15 series phones, 4-6% of TSMC's total sales in 2023 are expected to come from the N3 (3nm) process node.

The manufacturing of Apple's A17 Pro SoC marks a major step forward in the commercialization of TSMC's 3nm node, which is expected to contribute up to $3.41 billion in sales for the foundry this year, sources said.
TSMC N3 (previously codenamed N3B) is expected to gradually give way to N3E (the revised 3nm version) starting in 2024. Apple, Qualcomm, MediaTek, AMD, Nvidia, Intel and many other artificial intelligence (AI) chip customers are expected to adopt TSMC's N3E technology, the sources said.
In contrast, Samsung Electronics and Intel have been slow to migrate to more advanced node manufacturing and have few customers for their foundry services. Sources pointed out that the progress of their advanced manufacturing technology development and the construction of new fabs to bring the return on the huge investment are behind the pace of TSMC.
TSMC expects to increase its 3nm capacity from 55,000-60,000 wafers per month to 90,000-100,000 wafers per month by 2024, with a utilization rate of close to 90%, expanding its lead over rivals, the sources noted.
According to TSMC's technology roadmap, its next 3nm node upgrade to N3E will focus on enhancing chip performance, power consumption and production yields. The foundry has already put N3E into volume production and plans to replace N3 with an upgraded version starting in 2024, the sources said.
Although the semiconductor industry is still undergoing inventory adjustments, the sources noted that TSMC has already secured N3E order commitments from many customers. All major chip suppliers except Samsung will use TSMC's N3E process.
TSMC said that the first two years of volume production of the 3nm program will be more than twice as many as the 5nm series, and that the 3nm series will be another major node to meet long-term demand. TSMC also plans to bring N3P into volume production in the second half of 2024.N3P provides an additional boost to N3E, with a 5% increase in speed at the same leakage, a 5-10% reduction in power consumption at the same speed, and a 1.04x increase in chip density.
TSMC said its N3X prioritizes performance and maximum frequency for HPC applications, is 5% faster than the N3P at 1.2V drive voltage, and has the same chip density as the N3P, and will enter volume production in 2025.
TSMC also launched N3AE, or "Auto Early," in early 2023. N3AE offers an automotive process design kit (PDK) based on N3E and allows customers to launch designs for automotive applications at the 3nm node, resulting in a fully automotive-compliant N3A process by 2025.
TSMC also claimed that its development of 2nm technology with nanosheet transistors is making solid progress in terms of yield and device performance and is on track for volume production in 2025. The company said the 2nm technology will offer up to a 15% speedup over N3E at the same power, up to a 30% reduction in power consumption at the same speed, and greater than 1.15x chip density.
Neither Samsung nor Intel will be able to make the transition to a more advanced manufacturing node as smoothly as TSMC, the sources said.
Samsung announced its successful migration to the 3nm GAA architecture in June 2022, but the technology node has yet to gain a meaningful presence in the foundry space, and few customers have accepted Samsung's 3nm GAA process.
Intel will launch Meteor Lake, a CPU platform based on Intel 4 technology, on December 14th of this year, first for laptops and then for some desktop devices such as all-in-one PCs and minicomputers. Intel may be able to achieve the goal of "five nodes in four years", but sources pointed out that this technology transition will significantly shorten the product cycle of desktops, notebooks and servers, triggering customer concerns.
Intel emphasized that the development of Intel 3 is progressing well, using Intel 3 manufacturing Sierra Forest chips will be launched in the first half of 2024. However, the sources pointed out that moving Intel 4 and Intel 3 into mass production does not necessarily mean that the two processes will produce large-scale output.

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