TSMC Aims for a $20 Billion Investment for 3nm Chip Production – Looking to Secure Partners Early


With 5nm production on schedule, TSMC is expected to be ready for the future and to be prepared against the likes of Samsung and Intel. In order to keep its partners and other clients happy, TSMC has been reported to invest $20 billion in a 3nm chip production facility.

No Word on When Project Will Be Completed - Previous Report Detailed That Plant Should Be Operational by 2022

An earlier report retains the same information stated in the fresh one, with TSMC saying it would build a semiconductor fabrication plant in Taiwan dedicated to the 3nm technology. Bloomberg had reported that the 3nm production would be ready for use, although now the company has not detailed as to when the plant will be open for business.

Apple’s in-House 5G Modem for 2023 iPhone Range to Be Mass Produced Using TSMC’s 4nm Technology

According to the previous report, it was also detailed that TSMC was going to be investing an exorbitant amount of money because it wanted to retain high-profile customers such as Apple and Qualcomm. With Intel and Samsung featuring their own foundries, the semiconductor manufacturer would be at risk of losing its partners to its competitors if it does not maintain consistency in investments for setting up plants for chips based on a smaller lithography.

Currently, mobile chipsets utilize the 10nm FinFET technology, with Apple taking advantage of this lithography and bringing forth the A11 Bionic SoC in the iPhone 8, iPhone 8 Plus and iPhone X, making them the fastest phones out there right now.

Co-Chief Executive Mark Liu, who will succeed Morris Chang as chairman next year, said at the firm's supply chain management forum.

“This fab could cost upwards of $20 billion and represents TSMC's commitment to drive technology forward.”

With the introduction of the 3nm lithography, it will result in a threefold reduction in semiconductor size, making chips both powerful and less power-hungry. This will result in smartphones being able to exhibit much better battery life than its predecessors, although we hope that some breakthrough in battery technology will also come forward.

TSMC has also reported that risk production of the 5nm node will commence during the first half of 2019 and construction of the fab will begin early next year.

News Source: Nasdaq