Taiwan Semiconductor Manufacturing Company (TSMC) is witnessing a significant surge in demand, with both Apple and Nvidia emerging as major players in the race for cutting-edge chip technology, pushing the boundaries of innovation.
Apple’s Ambitious Stride into 3nm chip Territory – TSMC receive 50 percent boost in orders
Apple, a leading player in consumer electronics, has set its sights on the 3nm chip revolution, is said to place substantial orders with TSMC. According to Economic Daily News, Apple’s commitment to staying at the technological forefront is evident as its 3nm chip orders with TSMC are estimated to soar past the 50% mark. This robust partnership underscores Apple’s dedication to delivering groundbreaking performance and efficiency in its upcoming A18 chipset series for the future iPhone 16 – iPhone 16 Plus devices, which emphasizes on the improvement of Neural Engine that upgrade generative AI features.
The move to 3nm chip technology signifies a quantum leap in semiconductor miniaturization, enabling devices to become even more powerful and energy-efficient. As TSMC receive orders for 3nm chips from multiples partners who are Apple competitors, Apple still hold the position as the leading customers with 50% boost in orders, and accounted for US $17.52 billion which was 25% of the TSMC’s total revenue in 2023.. Apple’s significant investment in TSMC’s 3nm chips reflects not only their confidence in the manufacturing capabilities of TSMC but also their commitment to staying ahead in an increasingly competitive market.
According to a statement by TrendForce, just 6% of TSMC’s total income came from their 3nm manufacturing process, yet that percentage should rise significantly as the orders increase.
NVIDIA Charting New Heights in Graphics and AI Computing
On a “parallel track”, NVIDIA, a leading name in graphics processing and AI computing, has secured its position as TSMC’s second-largest customer.
In FY 2023, “Team Green”, NVIDIA, experienced significant growth fueled by the AI boom, leading to increased demand for their AI accelerators. This surge prompted a strengthened partnership with TSMC, both in technological and economic aspects
According to TSMC’s FY 2023 earnings in the audit report, NVIDIA’s orders, valued at $7.73 billion, constituted an 11% share of TSMC’s total revenue. While such other big names luke MediaTek, AMD, Qualcomm, Broadcom, Sony, and Marvell played a role in TSMC’s financial growth, only NVIDIA and Apple secured double-digit shares and are poised to continue their collaboration with TSMC in anticipation of its next-gen processes, suggesting further revenue growth for the Taiwanese giant.
For NVIDIA, this move is a testament to its pursuit of excellence in graphics and AI computing capabilities. As the demand for high-performance GPUs continues to surge, NVIDIA’s collaboration with TSMC positions them as key players in shaping the future of AI technology.
The collaborative efforts between TSMC, Apple, and Nvidia signify a dynamic shift in the landscape of semiconductor technology, where innovation and strategic partnerships are key drivers in propelling the industry forward. As the demand for more powerful and energy-efficient chips continues to grow, TSMC’s role as a leading chip manufacturer is becoming increasingly central to the ambitions of tech giants seeking to redefine the capabilities of their devices.
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Information source:
https://wccftech.com/apple-3nm-chip-orders-with-tsmc-exceed-50-percent/
https://wccftech.com/nvidia-becomes-tsmcs-2nd-largest-customer-coming-right-behind-apple/