TSMC's 3nm & 5nm processes are expected to bag in a whopping NT $1 trillion in revenue for the Taiwan giant, exceeding industry expectations.
TSMC's Dominance Is Evident In Modern-Day Markets As The Firm Manages To Grab A Large Share Of Industry Demand for its 3nm and 5nm Process Nodes
Well, there's no denying that TSMC has been leading in the industry in terms of the adoption of its processes and the revenue the Taiwan giant has been gaining in the past few quarters. With the AI hype kicking in and companies such as Apple preparing its next-gen lineup of products, TSMC has seen a massive increase in demand, especially for its 3nm and 5nm processes, which is why we previously reported on how the Taiwan giant is considering a large-scale price increase on 3nm/5nm, to capitalize on the market demand.
DigiTimes now reports that TSMC is well on its way to generating around NT $1 trillion or $31 billion just from two of its high-end semiconductor nodes, credit to the gigantic demand the firm faces moving into the next quarter.
The above figure is the total revenue gained from just three quarters, with TSMC seeing a parabolic rise in revenue for Q2 2024, achieving NT$336.7 billion, which amounts to around 40% of the total revenue in Q1-Q3. The astonishing figures in Q2 are simply due to how the Taiwan giant managed to capitalize on the AI hype.
Moving into the next quarter, TSMC estimates to generate NT$754 billion or around $23 billion, mainly from its mainstream 3nm and 5nm offerings. This time, major customers are reportedly NVIDIA and Apple, with the latter one getting its production lines ready for the release of the next-gen iPhone 16 series, which is likely employing TSMC's 3nm nodes. For NVIDIA, well, Blackwell production is up and running, and given that Team Green uses TSMC for its main semiconductor needs, the Taiwan giant is in for a gold rush in the next quarter.
The semiconductor industry is skewed towards TSMC for now since Intel and Samsung are nowhere, especially when it comes to the presence of their semiconductors in the markets. TSMC is said to be ramping up R&D expenditures moving into the future, and if things continue as they are right now, the firm is set to dominate the upcoming processes, including the 2nm as well.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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