TSMC's second-generation 3nm technology

TSMC held a ceremony for the mass production and expansion of its 3nm chips?at the Tainan Science Park on December 29th of last year, according to EET. TSMC successfully advanced its process node from 5nm to 3nm by utilizing a relatively mature FinFET transistor architecture. Samsung, six months ago, already launched its 3nm chip manufacturing technology?based on Gate-All-Around (GAA) architecture. It is expected that TSMC will release an upgraded version of its 3nm process, N3E, in the second half of this year.

Multiple medias?indicate that Apple secured the first batch of mass-produced chips using TSMC's first-generation 3nm N3 process. The yield rate for the N3 process is forecast?to increase to 80% in the second half of 2023.?

At the same time, AMD, Intel, and Qualcomm who collaborate with TSMC intend to?adopt its 3nm process. The trend?will also stimulate the application?of the 3nm process in Android smartphones, leading to a dramatical?change in the competitive landscape of the smartphone market.

The system-on-chip (SoC) A17, which Apple will use in the expected release of the iPhone 15 Pro and iPhone 15 Pro Max in the second half of this year, will utilize TSMC's 3nm technology?in terms of reports. Besides, the M3 chip used internally in the MacBook Air projected?to be released this year will also be manufactured applying?TSMC's 3nm process. Similarly, it is expected that the M3 Pro and M3 Max chips to be public?in 2024 for the MacBook Pros is planned?to?use the?process.

The main competitors?aganist Apple in advanced smartphone chips, involve?Qualcomm and MediaTek?who estimate to adopt?TSMC's N3E process expected to be announced in the second half of this year. Compared to TSMC's N5, which costs $16,000 per wafer, the cost of N3 is $20,000.?

This is also one of the reasons why chip developers, other than Apple, are still waiting for the more cost-effective N3E. Additionally, Apple invests in in-house SoCs that are integrated into its own end products, while Qualcomm and MediaTek can only profit from selling chips. This may also be why suppliers of such smartphone processors are hoping for the launch of the more cost-effective N3E.

Following?this trend, it is undoubtedly expected that Android smartphones will use 3nm process for chips?in 2024 and beyond, further expanding Apple's leading position in the smartphone market. Outside of smartphones, suppliers such as AMD and NVIDIA, who provide graphics processing units (GPUs) for applications, are also paying attention to TSMC's N3E process.