{"id":210965,"date":"2021-08-09T12:50:50","date_gmt":"2021-08-09T04:50:50","guid":{"rendered":"https:\/\/techwireasia.com\/?p=210965"},"modified":"2021-08-08T21:24:30","modified_gmt":"2021-08-08T13:24:30","slug":"the-5nm-and-3nm-chips-by-tsmc-are-maxed-out-what-happens-next","status":"publish","type":"post","link":"https:\/\/techwireasia.com\/2021\/08\/the-5nm-and-3nm-chips-by-tsmc-are-maxed-out-what-happens-next\/","title":{"rendered":"The 5nm and 3nm chips by TSMC are maxed out. What happens next?"},"content":{"rendered":"<ul>\n<li><b>The Taiwanese giant\u2019s 5nm chip production facilities are running at full capacity while 3nm orders are booked.<\/b><\/li>\n<li><b>It\u2019s almost impossible for TSMC to undertake any further orders, as it was reportedly forced to give priority to lucrative clients like Apple thanks to the chip shortage.<\/b><\/li>\n<li><b>Experts reckon Samsung would be viewed as the second-best option.<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Semiconductor foundry Taiwan Semiconductor Manufacturing Company (TSMC) has become <\/span><a href=\"https:\/\/techwireasia.com\/2021\/02\/the-dominance-of-the-worlds-largest-chipmaker-tsmc\/\"><span style=\"font-weight: 400;\">the most valuable publicly traded company in Asia<\/span><\/a><span style=\"font-weight: 400;\">, topping tech conglomerate Tencent. Unfortunately, the ongoing <\/span><a href=\"https:\/\/techwireasia.com\/2021\/03\/is-the-world-too-dependent-on-asias-semiconductor-industry\/\"><span style=\"font-weight: 400;\">chips shortage<\/span><\/a><span style=\"font-weight: 400;\"> has caused the Taiwanese giant to have its hands full running its 5nm production facilities at maximum capacity for various clients.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">TSMC\u2019s advanced manufacturing nodes are the reason why it is the most sought-out semiconductor company in the world especially amid a <\/span><a href=\"https:\/\/techhq.com\/2021\/04\/cisco-ceo-global-chip-shortage-to-last-for-most-of-this-year\/\"><span style=\"font-weight: 400;\">global chip drought<\/span><\/a><span style=\"font-weight: 400;\">. In fact, a new report also claims that its 3nm orders have been completely booked. The fact that TSMC is running at full capacity on some of its most in-demand nodes shouldn&#8217;t surprise anyone given the ongoing silicon shortage.\u00a0<\/span><\/p>\n<h3><b>What happens when TSMC is maxed out?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With the company&#8217;s fabrication facilities running at full tilt, companies such as Qualcomm have had to turn to Samsung to produce its latest Snapdragon chips, which further strains Samsung&#8217;s fabrication capacity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to <\/span><a href=\"https:\/\/wccftech.com\/tsmc-5nm-facility-at-full-capacity-3nm-booked\/\"><span style=\"font-weight: 400;\">Wccftech<\/span><\/a><span style=\"font-weight: 400;\">, Apple has contracted TSMC to use its N5P node to produce its A15 Bionic chip that will power the upcoming iPhone 13. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apparently, Apple has placed an order for up to 100 million &#8216;Bionic&#8217; chips from TSMC, so, considering the ongoing semiconductor shortage, that doesn&#8217;t leave much capacity for the incredibly high demand for silicon across pretty much every sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><div class=\"see-also right\"><div class=\"row\" data-equalizer><a href=https:\/\/techwireasia.com\/2021\/04\/how-taiwans-tsmc-will-counter-the-global-chip-shortage\/><div class=\"medium-12 small-4 columns\" data-equalizer-watch><img width=\"400\" height=\"200\" src=\"https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-400x200.jpg\" class=\"ratio2by1 wp-post-image\" alt=\"The chip supply shortage was exacerbated by the pandemic and the transformative role it played in how people work, learn, and live post-pandemic, said C.C. Wei, TSMC&#039;s CEO\" loading=\"lazy\" srcset=\"https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-400x200.jpg 400w, https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-800x400.jpg 800w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><img width=\"150\" height=\"150\" src=\"https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-150x150.jpg\" class=\"ratiosquare wp-post-image\" alt=\"The chip supply shortage was exacerbated by the pandemic and the transformative role it played in how people work, learn, and live post-pandemic, said C.C. Wei, TSMC&#039;s CEO\" loading=\"lazy\" srcset=\"https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-150x150.jpg 150w, https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-400x400.jpg 400w, https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-167x167.jpg 167w, https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-344x344.jpg 344w, https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-409x409.jpg 409w, https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-100x100.jpg 100w, https:\/\/cdn.techwireasia.com\/wp-content\/uploads\/2021\/04\/000_1WR8RP-125x125.jpg 125w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/div><div class=\"medium-12 small-8 columns\" data-equalizer-watch><h4>HOW TAIWAN&#8217;S TSMC WILL COUNTER THE GLOBAL CHIP SHORTAGE<\/h4><p class=\"byline\">Joe Devanesan | 15 April, 2021<\/p><\/div><\/a><\/div><\/div><\/span><\/p>\n<p><span style=\"font-weight: 400;\">It was already next to impossible for TSMC to undertake any further orders, as it was reportedly forced to <\/span><a href=\"https:\/\/wccftech.com\/tsmc-prioritize-chip-orders-for-apple\/\"><span style=\"font-weight: 400;\">give priority to lucrative clients<\/span><\/a><span style=\"font-weight: 400;\"> like Apple thanks to the chip shortage. Unless companies have money like Apple, this is bad news for some organizations. Even bigger names like AMD and Nvidia are going to have to fight harder to get the semiconductors they need to power their CPUs and GPUs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apparently, Apple will also take advantage of TSMC\u2019s 4nm node to be used in future products, and it has already been reported that the California-based giant has <\/span><a href=\"https:\/\/wccftech.com\/apple-secures-4nm-tsmc-chips-for-macs\/\"><span style=\"font-weight: 400;\">secured the initial shipments<\/span><\/a><span style=\"font-weight: 400;\"> for this next-generation manufacturing process. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Qualcomm may switch to TSMC\u2019s 4nm technology for the Snapdragon 898 Plus in late 2022, but only if TSMC has room to accommodate such orders.\u00a0 There was also a possibility that the <\/span><a href=\"https:\/\/wccftech.com\/samsung-mass-produce-google-tensor-chip-tsmc-handle-some-orders\/\"><span style=\"font-weight: 400;\">Taiwanese firm would be involved<\/span><\/a><span style=\"font-weight: 400;\"> in making chips for Google\u2019s Tensor, but it looks like all that responsibility has fallen on Samsung\u2019s shoulders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Inevitably, Samsung would be viewed as the second-best option, with experts claiming that the Korean firm\u2019s technology is inferior to TSMC\u2019s. But unless the chip shortage does not subside, other clients like Qualcomm, which is using Samsung to manufacture the Snapdragon 888 SoC, might have no opportunity to book orders with TSMC.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Taiwanese giant\u2019s 5nm chip production facilities are running at full capacity while 3nm orders are booked. It\u2019s almost impossible for TSMC to undertake any further orders, as it was reportedly forced to give priority to lucrative clients like Apple thanks to the chip shortage. Experts reckon Samsung would be viewed as the second-best option.<a class=\"excerpt-read-more\" href=\"https:\/\/techwireasia.com\/2021\/08\/the-5nm-and-3nm-chips-by-tsmc-are-maxed-out-what-happens-next\/\" title=\"ReadThe 5nm and 3nm chips by TSMC are maxed out. What happens next?\">&#8230; Read more &raquo;<\/a><\/p>\n","protected":false},"author":607,"featured_media":210966,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,2291],"tags":[38,3993,2431],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The 5nm and 3nm chips by TSMC are maxed out. What happens next?<\/title>\n<meta name=\"description\" content=\"The Taiwanese giant\u2019s 5nm chip production facilities are running at full capacity while 3nm orders are booked. 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