Processors

The 7nm node will not be used until the second half of 2019

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It is likely that TSMC's 7nm process node will not be fully leveraged in the first half of 2019. TSMC's 7nm process node will become a factor in 2019, acting as the node from which designs will be forged. AMD's 7nm CPU and GPU, while its use will be seen in high-end mobile processors such as Apple and Qualcomm.

Qualcomm, HiSilicon and Apple have reduced their 7nm silicon orders from TSMC

The 7nm is a huge step forward compared to the 14nm and 16nm nodes that are commonly used to manufacture today's PC hardware, providing improvements in performance, density, and energy efficiency.

A Digitimes report has stated that TSMC's 7nm node will be 'underutilized' during the first half of 2019, with a capacity of between 80-90%. Qualcomm, HiSilicon and Apple have reduced their orders for 7nm silicon, possibly due to lower-than-expected demand in the high-end smartphone segment, leaving TSMC with reserve capacity to sell to other manufacturers.

AMD could benefit from this

This little 'leverage' of TSMC's 7nm may be good news for AMD, depending on the success of its first 7nm products, giving them a little more leeway in expanding their wafer orders in in case it is necessary. AMD's second-generation EPYC (ROME) processors are poised to make a big leap in the server market, with the performance, scaling, and power benefits of 7nm perfectly matching the design of AMD's Zen 2 processor..

TSMC has projected that 7nm will contribute 20% of the company's revenue in 2019, with more than 50 designs planned so far and more products on the way.

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