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Chronicles

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TSMC begins mass producing 3nm chips in Taiwan, which need ~35% less power than 5nm chips, following Samsung, and also promises to build 2nm plants in Taiwan

Taiwan Semiconductor Manufacturing Co. kicked off mass production of next-generation chips Thursday, ensuring the island remains …

Bloomberg Debby Wu

Context & Ripple Effects

TSMC had mapped 3nm volume production for 2022 and later laid out five N3-family iterations before a 2nm-class introduction. Its latest milestone turns that published node roadmap into operating capacity while pairing the current node with a commitment to further Taiwan fabs.

Samsung had already claimed the first 3nm volume-production launch in June. TSMC's entry narrows the practical lead implied by Samsung's earlier 3nm start and makes process efficiency a more immediate competitive comparison.

First-order effects

  • TSMC can now offer customers a 3nm process with roughly 35% lower power use than its 5nm generation, moving its next-node roadmap from planned capacity to production.
  • Samsung loses the distinction of being the only named producer already in 3nm mass production, though its stated 45% power-reduction claim remains a competing benchmark.

Second-order effects

  • Chip buyers evaluating advanced-node designs gain two named 3nm production options, increasing the importance of process-power and area trade-offs in foundry selection.
  • TSMC's 2nm-fab commitment in Taiwan extends the investment cycle beyond 3nm, while its separately planned Arizona 3nm expansion shows the company is adding leading-edge capacity across more than one site.

Third-order effects

  • If TSMC continues moving node transitions from roadmap to volume production on this cadence, leading-edge foundry competition will be defined less by announcements than by sustained production ramps and power efficiency.
  • The pairing of new Taiwan production with future Taiwan 2nm plants points to advanced-process capability remaining concentrated around a small group of foundries and fabrication locations, even as TSMC expands abroad.

The trend: Advanced-chip manufacturing is becoming a continuous race to convert node roadmaps into volume capacity, with power efficiency and fabrication location shaping foundry competition.

Discussion

  • @wenyee_lee Wen-Yee Lee on x
    TSMC Chairman Mark Liu said that it will continue to develop advanced technology and expand advanced nodes capacities in Taiwan. In 2023 Q2, TSMC R&D Center will open in Hsinchu, Taiwan with 8,000 R&D employees posted. 2nm will be in Taichung and Hsinchu with a total of 6 phases.…
  • @p3b7_ Charles Guillemet on x
    We're getting closer to physics boundaries! TSMC launches 3nm techno mass production and is preparing the 2nm. It also highlights the concerns over global reliance on Taiwan for high-end tech https://www.bloomberg.com/...?
  • @dnystedt Dan Nystedt on x
    TSMC celebrated 3nm mass production at Fab 18 with “good yields” on Thursday. -Total investment in Fab 18 is NT$1.86 trillion (US$60.4 billion). -TSMC also held a Topping Ceremony for Fab 18's Phase 8 facility. $TSM #semiconductors Thread 1/5 https://pr.tsmc.com/...
  • @dnystedt Dan Nystedt on x
    2/5 TSMC 3nm -Fab 18 is a GigaFab, phases 1-8 each have 58,000 square meter cleanrooms, twice as big as a standard logic fab -Fab 18 already makes 5nm chips -Jobs created: 11,300 direct fab jobs, and 23,500 construction jobs $TSM $TSMC #semiconductors
  • @debbywuintaipei Debby Wu on x
    TSMC Chairman Mark Liu says TSMC will continue to deepen its roots & invest more at home, and Taiwan will play a even more critical role in the global economy over the next decade. https://twitter.com/...
  • @colourmeamused_ @colourmeamused_ on x
    3nm production has begun in Taiwan, check out the amazing level of detail on these people who I assume just came off the production line. Each of them is just three nanometers tall 😱 Lego could never. https://twitter.com/... https://twitter.com/...
  • @business @business on x
    TSMC kicks off mass production of 3-nanometer chips, seeking to keep its place as the dominant supplier of the world's most advanced semiconductors https://www.bloomberg.com/...
  • @wenyee_lee @wenyee_lee on x
    #TSMC celebrates its 3nm mass production in Tainan, Taiwan. https://twitter.com/...
  • @gdp1985 Gerard DiPippo on x
    “This isn't the end of globalization for U.S. tech or for American allies. But it sure feels like it for Chinese tech firms.” From @crmiller1. In the medium term, Chinese components and assembly can be replaced. But Taiwan's chips...not so much. https://www.theatlantic.com/ ...
  • @benign0 @benign0 on x
    “That chain is starting to rattle and even break, as the global tech industry works to become less dependent on China.” https://www.theatlantic.com/ ...
  • @jaegervonkramer Jäger von Heinrich Kramer on x
    This is basically why I think war with China isn't going to be as easy to start as some people think. https://twitter.com/...
  • @theatlantic @theatlantic on x
    New plants planned across the United States don't provide any real measure of self-sufficiency, @crmiller1 writes. https://on.theatln.tc/83nWFAn
  • @crmiller1 Chris Miller on x
    Just how badly does Apple need China? I explore shifting tech supply chains in this piece for @TheAtlantic https://www.theatlantic.com/ ...
  • @dlberes Damon Beres on x
    Learned a lot from @crmiller1's new piece https://www.theatlantic.com/ ...
  • @dwallacewells David Wallace-Wells on x
    “TSMC sits at the epicenter of the world's tech supply chains. It produces 90 percent of the world's most advanced processor chips, all of them in a handful of facilities in Taiwan.” https://www.theatlantic.com/ ...
  • @yashalevine Yasha Levine on x
    war with china would be bad but one upside is that it would demolish smartphone production. degrowth! https://www.theatlantic.com/ ...
  • @jamesfallows James Fallows on x
    “Any headline in the form of a question, assumes the answer ‘No,’ ” part six zillion. But an interesting piece. https://www.theatlantic.com/ ...
  • @zlingray @zlingray on x
    it's interesting, the rhetoric is that we are taking steps to deny china access to advanced chips and other “high-high tech” stuff, but it seems like really we are just anticipating their move to take taiwan which we know we can do nothing to stop when it comes. https://twitter.c…
  • @nkulw Noah Kulwin on x
    Either there's gonna be a big war or ???? Next week on Dragonball, https://twitter.com/...