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TSMC Expands 3nm Chip Production to Meet Growing Demand

Daniel Nenni

Staff member
TSMC, the world’s leading chipmaker, is reportedly ramping up production of its advanced 3nm chips. The expansion is said to be done due to the increased demand from tech giants seeking cutting-edge processors for their products.

In 2023, Apple was TSMC’s primary customer for 3nm chips, utilized in its iPhone 15 Pro smartphones. However, major players like Qualcomm, MediaTek, NVIDIA, and Intel have since expressed interest and placed orders.


To accommodate this influx, TSMC is reportedly eyeing to boost its monthly 3nm wafer production to 100,000 units by 2024. The company is also making efforts to improve its production yields for higher efficiency.

The initial version of TSMC’s 3nm process (N3B) reportedly faced yield challenges and carried a high cost. These factors may have deterred some companies from adopting the technology in its early stages.

However, TSMC’s improved second-generation 3nm process (N3E) will offer better performance while being affordable. This has likely led to an increase in client interest, which in turn means demand.

This year will likely see heightened competition in the semiconductor market as major tech companies begin releasing their first 3nm-powered devices.

Whether TSMC can successfully meet this surging demand, while addressing potential production challenges, will significantly impact the success of these upcoming devices and the companies behind them.

In related chip news, SMIC, China’s semiconductor giant is reportedly beginning the production of its 5nm chipsets for Huawei. SMIC has also set up a new semiconductor line in Shanghai specifically for making chips designed by Huawei.

The move comes as the Biden administration has imposed stricter export restrictions on advanced chipmaking equipment citing national security concerns.