Taiwan Semiconductor Manufacturing Corporation (TSMC) has received multiple orders for its 3-nanometer (3 nm) chip manufacturing technology, according to a report in Taiwanese media. TSMC is set to increase its 3nm production in the current half of this year, and the technology came at the center of the controversy earlier this month when it was reported that the manufacturing process would face delays due to Intel’s design changes to its products. TSMC denied the report and stated that its process technologies were progressing as planned, and now, Taiwanese publication DigiTimes reports that the company has purchased orders from several different companies to manufacture its products using advanced technology.
Big tech companies flock to TSMC 3nm process as Taiwanese press says
report from DigiTimes He quotes sources at the integrated circuit design firm to share details of orders TSMC may have received for the 3nm process. Chip makers have to rely on a strong demand list for their new operations, as high investment and setup costs can only be recovered once a large number of semiconductor chips are manufactured. Machines used in advanced chip manufacturing are costly to operate, and too few orders often result in underutilization which costs the chipmaker more money to manufacture than the profit it can make.
It also led to some controversy when Samsung Electronics’ chip-making division at Samsung Foundry announced it was mass-producing 3nm processors earlier this year. The decision, widely seen as an attempt by Samsung to get support on TSMC, was also followed by questions regarding potential orders the company might have received for its products. One of those orders was confirmed by a Chinese company, but details about the others remained unclear.
DigiTimes reports that TSMC has received 3-nanometer orders from a variety of companies, with leading firms Cupertino, California’s consumer technology giant Apple, Inc, and chip maker Intel in Santa Clara, California. Intel Cooperation with TSMC 3nm has received a lot of media attention, with the latest on this front claiming that the company has it 3nm process dropped for some of its products.
Reports also indicate that in addition to Intel and Apple, MediaTek, NVIDIA, Broadcom, AMD and Taiwan’s Qualcomm have placed orders for 3nm products. If true, it will give TSMC a strong advantage over Samsung, as the company will be able to rapidly ramp up 3nm production and capture a huge market share.
DigiTimes adds that Qualcomm is believed to be involved with Samsung in 3nm chips as well because the company prefers to diversify its suppliers and has other business considerations to consider as well when doing business with Samsung. Qualcomm is the world’s leading manufacturer of smartphone processors, and it competes with Samsung in this area as well, and the Korean company’s Exynos processors are also targeting the same market as Qualcomm products.
3nm technologies from Samsung and TSMC differ from each other because they use different transistor designs. TSMC has chosen to stick with traditional FinFET technology for its products, while Samsung has taken a leap forward with its advanced GaaFET technology, which theoretically allows for superior performance due to its high electrical conductivity.
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