Cloud giants will receive 3nm chips from TSMC in the second half of the year

The company confirmed that the company’s 3nm production revenue will not reach meaningful levels until the second quarter, although manufacturing of a mass machine chip started last quarter. According to TSMC officials, cloud giants are actively interested in making their own chips and a 3nm product will become one of them in the second half of the year.

Image source: TSMC.

CC Wei, CEO of TSMC, stated that the revenue from the sale of 3nm products will reach 5-6% of the total by the end of 2023, and its value in absolute terms will be higher than that of 5nm technology by the end 2023. is the first year on the market. Product launches with enhanced N3E technology will begin in the second half of the year. TSMC customers are interested in using 3nm technology. Digital projects are already twice as many as projects using 5nm technology in the first and second year of their life cycle.

The CEO acknowledged that the expansion of the three-nm product portfolio in the second half of the year will help TSMCs increase revenues from this period: the expansion of digital transformation technology will help the company return to its status. In fact, as you may know, I’m willing to share it with you through orders from a major HPC customer. In the second half of the year, a new product will be presented to address the artificial intelligence segment and an acceleration of calculations.

CC Wei added, These hyperscale customers want to build their own chips. Some of the customers in this space are working with TSMC to build their own chips. There is no reason to fear that customer demand for advanced lithography will decrease, said the TSMC boss. It’s quite likely that the company will start supplying accelerators to one of the cloud giants by then. We are probably talking about Amazon, Microsoft, Google or Meta* (Facebook*). Among other things, the Chinese Baidus are interested in helping Samsung design its servers with 3nm chips. It is possible that Chinese customers are in no rush to work with TSMC, fearing sanctions from the US, which have already significantly damaged Huawei Technologies’ business.

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