TSMC's dominance in today's market cannot be overlooked, and the company has successfully mastered the 3nm and 5nm process nodes to meet a large number of industry needs. The Taiwan giant has been an industry leader in terms of process technology adoption and revenue over the past few quarters. With the rise of the AI boom and companies like Apple preparing for their next-generation product lineups, TSMC's demand has grown significantly, especially for its 3nm and 5nm processes. This also explains why TSMC intends to respond to market demand by significantly increasing the price of 3nm and 5nm products.
According to the Electronic Times, TSMC is expected to generate about NT$1 trillion (about $31 billion) in revenue with just these two high-end semiconductor nodes, thanks to the huge demand the company faces in the next quarter. This figure represents only three quarters of total revenue, while TSMC's revenue in the second quarter of 2024 reached NT$336.7 billion, accounting for 40% of the total revenue from the first quarter to the third quarter. This staggering statistic is a complete reflection of how effectively TSMC is leveraging the AI boom to drive growth.
Figure: TSMC's 3nm and 5nm processes bring huge revenue (Source: WCCETECH)
This rapid revenue growth is due to the rise of artificial intelligence technology and the preparation of companies such as Apple to launch next-generation products, resulting in a significant increase in demand for TSMC's advanced process products. In particular, in the second quarter of 2024, TSMC achieved NT$336.7 billion in revenue, accounting for 40% of the total revenue from the first to the third quarter. TSMC is expected to generate about $23 billion in revenue from its 3nm and 5nm products in the coming quarter, with major customers including NVIDIA and Apple. Apple may adopt TSMC's 3nm node for processors for the next iPhone 16 series, while NVIDIA's Blackwell GPU production has already begun, relying on TSMC for its critical semiconductor needs.
Looking ahead to the next quarter, TSMC expects to generate NT$754 billion (about $23 billion) in revenue, mainly from its mainstream 3nm and 5nm process nodes. Key customers this time include NVIDIA and Apple, which are preparing to release the next-generation iPhone 16 series using TSMC's 3nm process. For NVIDIA, production of its Blackwell chips has already begun, and the Green team relies on TSMC for its major semiconductor needs, which has led to a new wave of TSMC in the next quarter.
At present, the semiconductor industry generally tends to choose TSMC because in terms of market share, both Intel and Samsung are difficult to compete with. It is reported that TSMC will increase R&D investment in the future, and if this trend continues, the company is expected to continue to maintain its leading position in the upcoming 2nm process.
