Tsmc to start 3nm volume production in 2022

TSMC continues to keep pace with its transition to smaller process nodes. According to JK Wang, the company's senior vice president for manufacturing operations, TSMC is on track to start commercial 5nm production in the second half of 2020, while 3nm mass production is also expected to start in 2022.

TSMC is in a position to begin mass production of the 3nm node in 2022

TSMC expects 5nm orders to rise next year as mobile phone vendors try to sell more efficient chips with integrated 5G modems. Since 5G modems require more power to deliver the promised 1Gbps, chipmakers will need all the efficiency gains they can get by moving to a smaller process node, so the 5nm process node is vital.

However, things might not be as promising for TSMC, as Chinese factory-less chip companies have started to slow down their orders to TSMC, as their own customers (device manufacturers) have started doing inventory checks during the year.

Smartphone makers would like to ship more 5G devices in 2020, but it appears that some of them are seeing a shortage of supply for OLED displays, hindering their ability to ship as many devices as they would have liked. This has spillover effects on Chinese factory-less chip makers, which are now expected to see their revenues drop in November and December.

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Fortunately for TSMC, one of its biggest clients, Apple, intends to launch not one, but four iPhone 5G models in the second half of 2020, according to recent leaks. Apple is also supposed to use the 5nm process to build its next-generation chip systems, so TSMC will have a hard job ahead of it to meet all demand, before the 3nm node arrives. We will keep you informed.

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