TSMC’s 5nm and 3nm semiconductor processes are among the company’s most sought-after offerings, with the company reportedly achieving a 100% utilization rate for its 5nm production lines. It also showcases the level of competition that TSMC enjoys in the foundry market, where partners such as Intel Foundry and Samsung need to run very hard indeed just to stay even close. Every growing demand, especially from the AI-related segments has enabled TSMC to leverage market opportunities and cement its lead.
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TSMC Reaches 100% Utilization with 5nm & 3nm Tech, Solidifying Market Dominance
According to Ctee reporting from TSMC, the foundry believes their 5nm production lines will be entirely filled with orders by next year due in large part to AI market growth. One of the main reasons for this demand comes from AI GPUs, including NVIDIA‘s Blackwell B200 series AI GPUs manufactured on TSMC’s 5nm process technology.
TSMC will prioritize these orders in line with NVIDIA’s plans to ship 200,000 of these GPUs by the end of 2024. Consequently, the production lines of the companies are at full capacity. TSMC also anticipates ramping up 5nm production even more once its new Arizona facility is online at the end of 2024.
Outside of 5nm, TSMC’s 3nm nodes have been popular with a number of companies including Apple and MediaTek. Some of the 5nm production capacity has been given over to 3nm by the company and it highlights the increasing importance in driving TSMC revenues. 3nm has also been inside NVIDIA’s high-end Blackwell AI servers, which means that 3nm is already coming back into play as adoption ramps up.
The continued strong demand for its cutting-edge semiconductor technology should put TSMC on the path to gaining an even greater share of the market in general. Meanwhile, competitors like Samsung continue to struggle with yield rate issues. As a result, TSMC’s leadership in the market seems increasingly solidified, making it the undisputed leader in the semiconductor sector for the foreseeable future.
FAQs
What is driving the demand for TSMC’s 5nm and 3nm processes?
The demand is primarily driven by the AI industry, with companies like NVIDIA using TSMC’s 5nm and 3nm technologies for their AI GPUs and servers.
How is TSMC staying ahead of competitors like Samsung?
TSMC’s 100% utilization rate for its advanced processes and focus on high-demand sectors like AI gives it a significant advantage over competitors facing challenges like yield rate issues.
