TSMC’s 3nm and 5nm Chip Production Expected to Be Fully Booked by Next Year Amid Scarcity for Big Tech

TSMC’s production capabilities are currently nearing peak limits, reflecting the soaring demand for its cutting-edge 3nm and 5nm semiconductor processes.

Record Demand for TSMC’s Latest Semiconductor Technologies

The surge in artificial intelligence adoption has led to unprecedented interest in TSMC’s semiconductor offerings. Major players such as NVIDIA, AMD, and Apple are increasingly incorporating TSMC’s chips into their devices. According to a report by Ctee, TSMC’s 3nm and 5nm production lines are anticipated to be completely booked by next year, with a significant portion of this capacity dedicated to mobile and high-performance computing (HPC) clients. Notably, sourcing chips has become increasingly challenging for large tech companies due to this high demand.

Currently, TSMC’s 3nm technology is deployed across a variety of mainstream consumer electronics, from Apple’s A19 system-on-chips (SoCs) to the forthcoming M5 chips. Moreover, industry leaders like MediaTek and Qualcomm have embraced TSMC’s N3P process in their latest mobile computing solutions. This dependency on TSMC underscores its vital role in enhancing performance within the mobile sector. On the personal computing side, Qualcomm’s recently unveiled Snapdragon X2 Elite CPU also utilizes TSMC’s advanced 3nm technology, alongside NVIDIA’s Rubin and AMD’s Instinct MI355X AI chips.

Rapidus semiconductor facility in Japan aims for 2nm chip mass production by 2027 amid competition from TSMC and Samsung

With TSMC’s 3nm capacity slated to be fully allocated by next year, the company might find it necessary to increase production prices to address the heightened demand and expand its facilities. The N3 technology is expected to debut in Arizona next year, which entails significant investments. The 5nm process is also experiencing a surge in demand, with reports suggesting that major tech firms now view chips as a ‘scarce resource.’ This scenario has fueled rumors that Apple has already secured substantial commitments for upcoming 2nm production ahead of its official launch.

At present, TSMC holds a pivotal position within the semiconductor industry, making it an indispensable asset to technology companies globally. The supply chain’s heavy reliance on semiconductor production based in Taiwan has prompted the U. S.administration to explore strategies to diversify chip manufacturing capabilities domestically.

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