Although there has been news recently that due to seasonal factors, TSMC’s 5-nanometer capacity utilization rate will decline next year, but now there are more rumors that Apple has actually placed orders for 3-nanometers.

According to TSMC’s plan, 3nm certification and trial production will be completed next year, and mass production will begin in 2022. However, by the end of this year, Apple has already taken the lead and is quite optimistic about TSMC’s progress in advancing advanced manufacturing processes. It is said that Apple introduced the 3nm process for its latest M series chips. Recently, the M1 chip released by Apple shocked the industry. In order to maintain the strength of subsequent products, it will closely follow the advanced semiconductor technology.

In addition to 3 nanometers, TSMC’s 4 nanometers will also be in progress next year. Although 3 nanometers is a key process, not all customers will want to use them immediately. Therefore, the improved 4 nanometers based on the 5 nanometer process will also allow customers to have more s Choice. Nevertheless, the 3-nanometer target is expected to move toward a monthly production capacity of 50,000 pieces in the initial stage, and the total production capacity will be close to 5-nanometer.

Because the development of its own high-end chips has gradually become a trend, after Apple, such as Microsoft, it also plans to develop its own chips, and the demand for advanced manufacturing processes in the future will also increase. With regard to the foreseeable Apple product replacement wave, it is expected that there will be a demand for 500 million chips, all of which will adopt advanced manufacturing processes, and TSMC will provide 5 nanometers, 4 nanometers and 3 nanometers for major manufacturers to choose from.

Vs. Samsung

Of course, Samsung’s threat is still not to be underestimated. It has been reported that Nvidia’s GPU will continue to place orders from Samsung. It is obvious that it is still competitive, and Samsung has always expressed confidence that it will surpass TSMC at 3nm. In particular, Samsung will be the first to adopt the GAA structure, which has caused many public concerns, and its performance will surpass the TSMC process.

However, TSMC is still in the lead in the promotion of the ecological promotion of 4nm and 3nm, and the news of Apple's package also shows the industry's confidence in TSMC. In addition, TSMC’s 3 nanometer technology will continue to use partially verified IP, which is more cost-effective for customers. All starting from customer needs is TSMC’s strategy.

To put it simply, although Samsung adopts new technology, it also said that its mass production is more difficult, and it is difficult to improve its yield performance in the short term. Even if it is really superior in terms of extreme performance, its price/performance ratio may in turn lose to TSMC. TSMC's stable layout and mastery of process and technology are still accumulating advantages, which will become a high barrier that Samsung cannot overcome.