A recent report from ICSmart.cn highlighted that TSMC saw a 15% revenue contribution from its 3nm fabrication process in the quarter of 2023. Initially, only Apple was tapping into this cutting-edge manufacturing technique. However, with clients adopting this technology, the 3nm process nodes are projected to play a role in TSMC’s overall revenue.
More About the TSMC’s 3nm Technology
Looking ahead to 2024, TSMC’s N3 series nodes, including N3B and N3E, are expected to make up more than 20% of the company’s revenue. Currently, Apple is exclusively using TSMC’s N3B for crafting its A17 Pro SoC chips for smartphones and the M3 series processors for iMac and MacBook devices. This year, we anticipate AMD and Intel jumping on board with TSMCs N3E and possibly N3B for their processors, further boosting earnings from the 3nm process.
AMD is gearing up to unveil its Zen 5-based processors manufactured on 3nm and 4nm class process technologies later this year. These processors, known by the codename Nirvana, are also set to leverage TSMC’s state-of-the-art 3nm technology and are scheduled for release in the first half of the year.
The report also discusses Apple’s plans for the iPhone 16 lineup, which will include the A18 series chipset as well as the upcoming M4 series processors designed for Mac computers. Both of these components will be manufactured using TSMC’s 3nm technology, with production slated to start in the second quarter of this year, highlighting Apple’s ongoing partnership with TSMC on their N3 series node.
Additionally, Intel is looking to utilize TSMC’s cutting-edge 3nm technology for its Lunar Lake MX SoCs, with mass production anticipated to kick off in the quarter. This marks the first instance of Intel entrusting TSMC with the entire range of chips for its mainstream consumer platform, underscoring TSMC’s expanding role in serving Intel despite being a competitor in the foundry market.
With major customers such as Apple, AMD, and Intel utilizing TSMC’s 3nm family of process technologies, the node is poised to capture an even larger portion of TSMC’s revenue this year. Moreover, the adoption of TSMC’s N3 nodes is expected to grow further in 2025, including the performance-enhanced N3P. As a result, the report predicts that 3nm technology will account for over 30% of TSMC’s earnings in 2025.
