TSMC's production lines are reportedly running close to full capacity as the Taiwanese giant sees huge demand for its 3nm and 5nm processes.
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TSMC currently has strong demand for all its processes, mainly driven by mobile and HPC customers
With the rise of AI, demand for TSMC's semiconductors has reached unprecedented levels. This is primarily due to the rush by companies like NVIDIA, AMD, and Apple to integrate TSMC's chips into their consumer products. According to a report in the Commercial Times (Ctee), TSMC's 3nm and 5nm production lines are expected to be "fully booked" next year, with a significant portion allocated to mobile and HPC (high-performance computing) customers. Furthermore, wafer production capacity is stretched to the point where acquiring chips has become a challenge for tech giants.
TSMC's 3nm process is currently used in every mainstream consumer product, from Apple's A19 SoC to its upcoming M5 chip. MediaTek and Qualcomm have also integrated the N3P process into their latest mobile chips, demonstrating the mobile sector's complete reliance on TSMC for desired performance. On the PC side, Qualcomm's recently released Snapdragon X2 Elite CPU chip is reportedly also based on TSMC's 3nm node. Similarly, in the AI field, Nvidia's Rubin and AMD's Instinct MI355X will also utilize the same process.
With the 3nm process expected to be fully booked next year, TSMC may be forced to raise process prices to meet demand and expand its production lines, especially with rumors that the N3 process will begin production in Arizona next year, which would require significant investment. Demand for the 5nm node is equally strong, with reports suggesting that tech giants now view chips as a "scarce resource," which explains why Apple is rumored to have reserved a significant portion of its 2nm production capacity long before the start of production.
Currently, the entire semiconductor industry revolves around TSMC, one of the most important assets for companies worldwide. The supply chain is heavily reliant on chips produced in Taiwan, which is why the US government is now seeking to diversify this production to the United States.
Source: Content compiled from wccftech
