At the last quarterly conference, TSMC’s management confirmed that the company’s revenues from the shipment of 3nm products will only reach meaningful levels in the second quarter, although the formal mass production of chips of this generation started last quarter. According to TSMC officials, “cloud giants” are actively interested in the possibility of making chips of their own design, and some 3nm products will become one of them in the second half of the year.
TSMC CEO CC Wei explainedthat revenue from the sale of 3nm products will reach 5-6% of total revenue by the end of 2023 and will be higher than that of 5nm technology in absolute terms, based on the results of the first year on the market. The market launch of products based on the improved N3E technology will begin in the second half of this year. TSMC customers are interested in using 3nm technology, the number of digital projects is already double the number of projects using 5nm technology in the first and second year of their life cycle.
The CEO also admitted that the expansion of the 3nm product portfolio in the second half of the year will help boost TSMC’s sales during this period: “Technical process extension N3 will help companies get back on the growth path. In fact, I’d like to share with you, through orders from a major HPC customer. In the second half of the year, a new product relating to the segment of artificial intelligence and acceleration of calculations will be presented..
Xi Xi Wei later added: “Some hyperscale customers want to develop their own chips. Some of our customers in this area work with us TSMC on developing their own chips”. There is no reason to fear that customer demand for advanced lithography will decrease, the TSMC board of directors said. Apparently, the company will start supplying one of the “cloud giants” with artificial intelligence system accelerators developed for their needs as early as the second half of the year. Probably Amazon, Microsoft, Google or Meta* (Facebook*). Rumors also justify the Chinese Baidu’s interest in working with Samsung to produce 3 nm chips for its server systems. It’s possible that Chinese customers are in no hurry to work with TSMC for fear of US sanctions, which have already significantly hurt Huawei Technologies’ business.
* It is included in the list of public associations and religious organizations for which the court made a final decision to liquidate or ban activities on the grounds provided for in Federal Law No. 114-FZ of July 25. 2002 “On Countering Extremist Activities”.