Intel’s 3nm Delays Disturb TSMC’s Expansion Plans

As reported by TrendForce, Intel is again delaying the release of the tGPU chipset in Meteor Lake until the end of 2023, which it planned to outsource to Taiwan Semiconductor Manufacturing Company (TSMC). tGPU kits were previously pushed back from the second half of 2022 to the first half of 2023 due to the complexity of their design and validation procedures.

Unfortunately for TSMC, Intel is postponing chipset releases until 2023, effectively canceling the agreement to outsource 3nm chip manufacturing capacity. Consequently, TSMC decided to slow down the expansion, which would otherwise have resulted in higher costs due to idle production assets. TrendForce also suggests that the delay could affect TSMC’s plans for future capital expenditures in 2023.

However, it says there are prospects in 2024 that are worth recognizing. While Apple has become the leading 3nm chipset company due to the cessation of TSMC expansion, it is still TSMC’s main customer. With products such as the A-17 Bionic and M-series chips featuring 3nm chipsets, Apple is also aiming to use 3nm processors for its iPhone in 2024; therefore TSMC can expect revenue growth.

Apple already has Samsung and LG making chipsets for their iPhone 14 Pro series, and 3nm chipsets reserved for the M2 Pro and eventual M3 line covered by TSMC . However, it is difficult to assess whether these delays from TSMC and Intel will affect Apple’s schedule.

Source: Trendforce via MacRumors

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