TSMC’s 3-nanometer Manufacturing ‘Delay’ Provides Samsung An Edge Says Korean Media

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After the Taiwan Semiconductor Manufacturing Firm (TSMC) reported its earnings for the third fiscal quarter, the South Korean media is claiming that TSMC’s essential 3-nanometer  manufacturing course of is delayed. This, in line with a report from Enterprise Korea, has supplied Samsung Foundry with an edge for the reason that firm kicked off 3-nanometer manufacturing earlier this yr – an announcement that got here with skepticism in regards to the potential orders that Samsung may need obtained for the brand new know-how.

The report cites feedback made by TSMC administration throughout the earnings name, through which they said that 3-nanometer manufacturing is on observe for quantity manufacturing later this quarter. This, in line with Enterprise Korea, is an admission that the method has been delayed, because it cites earlier reviews within the Taiwanese media to assert that TSMC had initially deliberate manufacturing in within the third quarter.

TSMC Chief Shares That Demand For 3-nanometer Course of Is Outstripping Its Capability

TSMC’s earnings name revolved round a handful of points, an important of which was its capability for manufacturing the 3-nanometer semiconductors, the demand for the superior know-how, and the stock correction that’s plaguing the chip business.

Nonetheless, earlier than we get to those, Enterprise Korea’s report means that TSMC’s statements which shared that 3-nanometer quantity manufacturing is slated for the present quarter indicate that manufacturing has in actual fact been delayed. All through the course of the final yr and this yr, TSMC’s administration has maintained that quantity manufacturing will begin within the second half of this yr.

On the earnings name, TSMC’s chief government officer Dr. C.C. Wei shared that his agency will begin quantity manufacturing for N3 (3-nanometer) this quarter and that the brand new course of know-how will deliver in additional income than its predecessor as a result of a bigger buyer base.

Dr. Wei additionally shared that the demand for N3 is exceeding his firm’s potential to produce the merchandise and that the variety of tape-outs for N3 and the succeeding N3E course of is greater than double the tape-outs for the 5-nanometer course of throughout the latter’s first and second yr. Reiterating his confidence within the 3-nanometer course of household, he said that:

Regardless of the continuing stock correction, we noticed a excessive stage of buyer engagement at each N3 and N3E with quite a lot of tape-outs greater than 2x than that of N5 in its first and second yr. We’re working carefully with our software provider to handle in the direction of supply challenges and put together extra 3-nanometer capability to help our prospects sturdy demand in 2023, 2024 and past. Our 3-nanometer know-how would be the most superior semiconductor know-how in each PPA and transistor know-how when it’s launched. We’re assured that N3 household can be one other giant and long-lasting node for TSMC.

Moreover, the slowdown within the private computing market that has decimated the revenues of gamers reminiscent of Intel, NVIDIA and AMD, will even have an effect on TSMC’s 7-nanometer and 6-nanometer capability utilization. Dr. Wei believes that this slowdown will proceed till the primary quarter of subsequent yr, and a portion of his firm’s discount of capital expenditures is because of this slowdown and the ensuing capability underutilization.

He additionally shared that the slowdown in PC demand took his prospects without warning and in line with Dr. Wei, the forecasts supplied to him whilst early as the beginning of this yr have been nonetheless very excessive in comparison with the demand that materialized.

Nonetheless, demand for information middle and automotive merchandise stays regular, and commenting on the stock correction, the chief highlighted that:

And for the stock correction in 2023, all we need to say is like that. We anticipate in all probability 2023, the semiconductor business will prone to decline. However TSMC additionally will not be immune, however we consider our know-how place, sturdy portfolio in HPC and longer-term strategic relationship with buyer will allow our enterprise to be extra resilient than the general semiconductor business. And that is why we are saying in 2023, nonetheless a progress yr for TSMC and the general business in all probability will decline.

Lastly, TSMC nonetheless plans to mass produce the 2-nanometer course of in 2025, and each the know-how growth and buyer curiosity within the course of is just like applied sciences such because the N3 and N5.