Industry Expects TSMC's 3nm Capacity Utilization to Surpass 80%

The industry anticipates that TSMC's 3nm technology, having secured orders from major companies like Apple, Qualcomm, and MediaTek, will focus on ramping up its 3nm capacity this year. It is even expected to allocate some of its 5nm capacity to 3nm, with the aim of the 3nm capacity utilization rate breaking through 80% by the end of the year.

Previously, TSMC President C.C. Wei stated at an earnings conference that the 3nm process began mass production in the second half of last year. Benefiting from the demand in smartphones and HPC (High-Performance Computing), the revenue contribution from the 3nm family is expected to grow more than threefold this year, increasing its overall revenue share from 6% last year to 14-16%.

Wei pointed out that TSMC's 3nm process technology leads the industry in PPA (performance, power consumption, and area) and transistor technology, making it the most advanced globally. Nearly all smartphone and HPC manufacturers worldwide are cooperating with the company. Wei is optimistic that, driven by the strong demand for smartphones and HPC applications, the revenue contribution from the 3nm technology will increase more than threefold this year, accounting for about 14-16% of TSMC's wafer sales. The company continues to develop new technologies, including the N3P and N3X processes.

Beyond 3nm, TSMC, Samsung, and Intel are also focusing on the 2nm process. TSMC expects to start offering 2nm process wafer foundry services by 2025, with production planned in several facilities, including the Baoshan plant in Hsinchu, Taiwan, the Zhongke plant, and the Kaohsiung plant, projecting at least five factories to produce the 2nm process.

Regarding other manufacturers, there were previous reports in the industry that Samsung Foundry had successfully secured an order from the Japanese AI unicorn startup Preferred Networks (PFN). Recently, it has also been actively courting Meta for 2nm orders, with Samsung currently expecting its 2nm process to reach mass production by 2025.