TSMC: 3nm process still on track, test production to start in 2021
TSMC reports that its 3nm process is on schedule. Test production of this node will start later in 2021 and 3nm mass production is planned for next year. The company is also increasing its investment capital for 2021 by 46 to 63 percent compared to 2020.
The Taiwanese chip maker reports in a teleconference with shareholders that the development of its 3nm process is on schedule. The manufacturer already reported in April 2020 that 3nm-risk production should start in 2021 and that mass production would start in the second half of 2022. However, Taiwanese newspaper Digitimes stated late last year that TSMC and Samsung both encountered problems with their respective 3nm nodes, which may have forced them to postpone mass production of their processes. So, at least for TSMC, this doesn’t seem to be the case.
The semiconductor manufacturer also says it will invest about 46 to 63 percent more capital in 2021, compared to a year ago. The company is allocating between 25 and 28 billion dollars to keep up with the rising demand for chips, while the company invested about 17.2 billion dollars in 2020. Of this amount, 80 percent will be invested in increasing production capacity for TSMC’s ‘advanced processes’, that is, 3nm, 5nm and 7nm.
TSMC is making this announcement following its quarterly results, which show that 49 percent of its revenue in the fourth quarter of 2020 came from its 7nm and 5nm nodes. Turnover in that period amounted to approximately 10.5 billion euros. Net profit in the past quarter amounted to approximately 4.2 billion euros, an increase of 23 percent compared to the same period in 2019.
TSMC produces chips for several major tech companies, including AMD’s CPUs and GPUs and Apple’s mobile SOCs and M1 processor. According to Bloomberg sources, Intel is also currently in talks with TSMC and Samsung about outsourcing part of Intel’s chip production. The company has not made any official announcements about this yet. Intel will hold a conference call with investors on January 21 and previously reported that a decision will be made on that date. However, according to news outlet OregonLive, the company has told its staff that it will not make a decision until after Pat Gelsinger takes over as the new CEO. Gelsinger will join Intel on February 15.