Apple may have been the first to introduce the world’s first 3nm ‘N3E’ chipset in the form of the M4, and later, the A18 and A18 Pro for the iPhone 16 series, but it is not the only customer that is dependent on TSMC’s advanced technology. This year, more players such as Qualcomm and MediaTek have entered the fold, leveraging the cutting-edge manufacturing process, of which the Dimensity 9400 has already been announced, with the Snapdragon 8 Gen 4 remaining. These reasons, and more, are why analysts believe that TSMC will post a 40 percent net profit earnings bump in Q3 2024.
AI boom to also play a crucial role in TSMC’s net earnings, with the semiconductor giant estimated to pocket $9.27 billion
A report from The Korea Times says that based on the LSEG SmartEstimate data that was accumulated from 22 analysts, TSMC is expected to generate a net profit of T$298.2 billion, or approximately $9.27 billion, for the third quarter of 2024. Compared to the same quarter a year ago, TSMC made T$211 billion, or around $6.54 billion.
There are two primary reasons for this profit surge; more companies are placing chip orders with the firm to gain an edge in the AI boom, and customers such as Apple, Qualcomm, and MediaTek want to obtain an upper hand with their 3nm ‘N3E’ offerings this year. So far, TSMC appears to have experienced no competition from rivals, with even Samsung failing to attract new customers for its next-generation 3nm GAA yields due to unstable yields.
Some South Korean firms who used to previously place orders with their local foundry giant have formed a business partnership with TSMC for its mature nodes, inflicting a major blow. Samsung has been estimated to lose another $1.564 billion this year, with TSMC said to thrive immensely over its competitor’s continuous struggles.
Next year, we should witness the adoption of a more advanced 3nm variant from the Taiwanese giant, with companies such as Apple said to use the N3P node to mass produce the M5, A19, and A19 Pro. It is unlikely that any TSMC partner will shift to the 2nm process, as wafer costs alone will discourage such firms from pursuing such an undertaking.
News Source: The Korea Times
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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