[News] TSMC’s A16 Process Creates a Buzz Before Mass Production, as OpenAI Reportedly Secures Capacity

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TSMC’s angstrom-level A16 process is creating a buzz even before mass production. According to a report from the Economic Daily News, not only has major client Apple already booked the capacity for TSMC’s A16, OpenAI has also joined in to secure TSMC’s A16 capacity due to its long-term need for self-developed AI chips.

Regarding this matter, TSMC stated on August 30 that the company does not comment on market rumors or on business dealings with individual customers.

Despite that TSMC’s A16 process is scheduled to enter mass production in 2026, the report has hinted that the first batch of customers has already surfaced.

In addition to Apple, which has been in continuous collaboration with TSMC, the most notable new customer of TSMC’s A16 is said to be OpenAI, the developer of ChatGPT, which is actively investing in the design and development of its own ASIC chips.

Industry sources cited by the same report reveal that OpenAI had initially been in active discussions with TSMC about establishing a dedicated fab. However, after assessing the potential benefits, the plan to build a dedicated facility was shelved.

Strategically, OpenAI is now partnering with U.S. companies like Broadcom and Marvell to develop its own ASIC chips, and potentially emerging as one of Broadcom’s top four customers.

Since both IC design giants are long-term clients of TSMC, the ASIC chips they are helping OpenAI develop are expected to be produced using TSMC’s 3nm process family and the subsequent A16 process, according to the chip design roadmap.

It is worth noting that OpenAI not only holds a critical position in the development of AI applications beyond Apple’s ecosystem but also contributes to the advancement of AI applications in Apple devices.

In June of this year, Apple unveiled its personalized intelligent system, Apple Intelligence, which has integrated ChatGPT. This strategic move has led observers to believe that OpenAI plays a key role in Apple’s AI development.

As OpenAI continues to invest in the design and development of its own ASIC chips, it is reportedly expected to maintain its influence in the AI computing field.

TSMC unveiled its angstrom-class A16 advanced process during the company’s 2024 North America Technology Symposium on April 25, set to be mass-produced in 2026.

Per TSMC, Compared to TSMC’s N2P process, the A16 offers an 8% to 10% speed increase at the same Vdd (operating voltage), a 15% to 20% reduction in power consumption at the same speed, and a density increase of up to 1.1 times, supporting data center products.

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