Source URL: https://www.theregister.com/2025/01/16/tsmc_says_16nm_chips_volume_2026/
Source: The Register
Title: TSMC plans to have 1.6nm chips in ‘volume production’ by 2026
Feedly Summary: You’ve got to spend money – like $36 billion+ – to make, er, AI chips
TSMC is bumping capital expenditure in 2025 to between $38 billion and $42 billion in anticipation of scooping up more chip manufacturing contracts in the field of AI processors.…
AI Summary and Description: Yes
Summary: The text provides an overview of TSMC’s substantial capital expenditure plans for 2025, aiming to enhance its presence in AI processor manufacturing. Highlighting advancements in chip technologies, including 2nm and upcoming 1.6nm chips, the report indicates a robust demand in the AI field, underpinning TSMC’s optimistic revenue forecasts.
Detailed Description:
– TSMC (Taiwan Semiconductor Manufacturing Company) is increasing its capital expenditure (capex) significantly in 2025, projecting between $38 billion and $42 billion to capture more contracts in AI processor manufacturing.
– The company’s strategy focuses on ramping up production of cutting-edge chips, marking a response to the growing demand for AI-related technology.
– Key points highlighted in the report include:
– **Upcoming Chip Technologies**:
– TSMC aims to produce 2nm chips by the end of this year and expects to introduce 1.6nm chips by 2026, promising considerable performance improvements.
– The N2 (2nm technology) promises a 10-15% speed improvement or a 20-30% power reduction compared to the previous generation (N3E technology).
– TSMC’s A16 technology will further enhance speed and energy efficiency in the upcoming 1.6nm chips.
– **Market Demand**: The demand for AI accelerators (including GPUs, ASICs, and HBM controllers) is projected to double by 2025, driven by their use in data centers for training and inference.
– **Revenue Forecast**: TSMC anticipates a strong revenue growth of mid-20s percentage in US dollar terms for the full year of 2025.
– **Global Expansion Plans**: TSMC is not only expanding in Taiwan but is also making substantial investments in fabrication plants in Arizona, Japan, and Europe, including advanced technologies (N3, N2, and A16 nodes) tailored to customer needs.
– **Revenue Composition**: In Q4, the majority of TSMC’s revenue came from 5nm chips (43%), followed by 3nm chips (26%) and 7nm chips (14%). The high-performance computing (HPC) sector contributes a significant portion of total revenue at 53%.
This analysis is crucial for security and compliance professionals as the growth and technological advancements at TSMC could have implications on security architecture, especially with advanced chip technologies serving critical AI applications. Understanding the supply chain and potential vulnerabilities in chip production is essential in ensuring robust security measures in AI implementations.