The continuous increase in silicon content driven by AI servers, high-performance computing (HPC) applications, and the AI integration of high-end smartphones has led to a surge in demand for semiconductors. According to a report from the Economic Daily News, major companies such as Apple, Qualcomm, NVIDIA, and AMD are reportedly securing substantial production capacity for TSMC’s 3nm process family. This has resulted in a queue of clients stretching all the way to 2026.

TSMC has a consistent policy of not commenting on individual client information. Regarding whether the high demand for production capacity will lead to price increases to reflect its value, TSMC emphasizes that its pricing strategy is always strategically oriented rather than opportunistically driven. TSMC will continue to work closely with clients to provide value.

As per sources cited by the same report, TSMC is not a company that raises prices arbitrarily. Reflecting value does not equate directly to price increases, even though the company holds a leading edge in advanced process technology. There are various ways for TSMC to demonstrate value to its customers.

The members of TSMC’s 3nm family include N3, N3E, N3P, as well as N3X and N3A. As the existing N3 technology continues to be upgraded, N3E, which began mass production in the fourth quarter of last year, targets applications such as AI accelerators, high-end smartphones, and data centers. N3P is scheduled for mass production in the second half of this year and is expected to become mainstream for applications in mobile devices, consumer products, base stations, and networking through 2026. N3X and N3A are customized for high-performance computing and automotive clients.

Source: TSMC

Industry sources cited by Economic Daily News in the report believe that with clients rushing to book production capacity, TSMC’s 3nm family will continue to experience tight supply over the next two years. This does not yet include Intel’s outsourcing demand for CPUs.

Due to the fact that TSMC’s 3nm family production capacity has already been fully allocated by customers for this year and next, the company’s plan to triple the relevant capacity this year compared to last year is still insufficient. To ensure an uninterrupted supply for the next two years, TSMC has implemented several measures to expand its production capacity.

Previously, during an earnings call, the company announced that due to robust demand, its strategy includes converting some 5nm equipment to support 3nm production. Industry sources cited by the report also reveal that TSMC’s total 3nm family capacity is continuously increasing, with monthly production capacity expected to reach between 120,000 and 180,000 wafers.

Meanwhile, the sources cited by the Economic Daily News indicate that the main sources of orders for TSMC’s 3nm family include major clients such as Apple, Qualcomm, NVIDIA, and AMD. Apple is expected to launch the iPhone 16 series as early as September, which is anticipated to be the first iPhone with AI capabilities, potentially sparking a new wave of upgrades among Apple fans.

Source: TSMC

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(Photo credit: TSMC)

On May 30, MediaTek unveiled the Dimensity 7300 series mobile chips, including the Dimensity 7300 and Dimensity 7300X, both utilizing TSMC’s highly efficient 4nm process. The Dimensity 7300 offers exceptional energy efficiency and performance, meeting the high demands for multitasking, imaging, gaming, and AI computing in terminal devices. The Dimensity 7300X supports dual-screen displays, making it suitable for foldable devices.

The Dimensity 7300 series features an octa-core CPU with 4X Arm Cortex-A78 cores operating at 2.5GHz paired with four Cortex-A55 cores. Compared to the Dimensity 7050, the advanced 4nm Cortex-A78 cores in the Dimensity 7300 can achieve up to 25% power savings at the same performance level.

The Dimensity 7300 is equipped with a 12-bit HDR-ISP image processor, Imagiq 950, which supports up to a 200MP main camera, enabling smartphone users to capture images with outstanding color and detail. The Dimensity 7300 combines a new hardware engine that provides precise noise reduction (MCNR), hardware face detection (HWFD), and video HDR capabilities, allowing users to capture clear images in various lighting conditions.

“The MediaTek Dimensity 7300 chips will be important for integrating the latest AI enhancements and connectivity features so consumers can seamlessly stream and game,” said Dr. Yenchi Lee, Deputy General Manager of MediaTek’s Wireless Communications Business. “Furthermore, the Dimensity 7300X enables OEMs to develop innovative new form factors thanks to its dual display support.”

Compared to the Dimensity 7050, the Dimensity 7300 offers a 1.3 times improvement in live focus photo performance and a 1.5 times improvement in photo remastering. Additionally, the dynamic range for 4K HDR video recording has been enhanced by 50% compared to similar products, delivering richer image details. The Dimensity 7300 integrates the AI processor APU 655, which delivers performance that is twice that of the Dimensity 7050.

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(Photo credit: MediaTek)

As reported by the South Korean tech media outlet TheElec, South Korean smartphone giant Samsung is said to be planning to increase the production of phones manufactured by joint development manufacturers (JDM) in China from 4.4 million to 6.7 million units this year. The increased output from its JDM partners indicates that outsourced orders will account for 25% of Samsung’s smartphone production target for the year.

Reportedly, its JDM partners typically handles the production of low-end smartphones, being responsible for design and component procurement while Samsung provides the brand. For the past couple of years, the company has used JDM partners like Wintech to reduce its production cost for smartphones.

Furthermore, collaborating with JDM partners also enables Samsung to leverage the local manufacturers’ expertise in understanding trends. For instance, with the assistance of JDM partnerships, the Galaxy C55 was optimized locally for the Chinese market.

The number of Samsung smartphones produced by these JDM partners has also been steadily increasing in recent years. Data indicates that in 2019, JDM-produced phones accounted for less than 7% of Samsung’s smartphone output, but this year, that proportion has risen to 25%.

Regarding the current smartphone market in China, the China Academy of Information and Communications Technology (CAICT) has released its April 2024 analysis of the Chinese mobile phone market, showing a year-on-year increase of 28.8% in mobile phone shipments to 24.071 million units during the period.

According to the data from CAICT, in terms of brands, local brands dominated with 85.5% of the shipments, approximately 20.576 million units, while overseas brands, including Apple, accounted for nearly 3.5 million units.

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(Photo credit: Samsung)

Google has reportedly collaborated with TSMC on the upcoming Tensor G5 chip, slated for use in the Pixel 10 series smartphone to be released next year, according to media outlet Android Authority, based on information it spotted in trade databases.

Google has been cooperating with Samsung on its self-developed Tensor processors since 2021, including the Tensor G4 used in the Pixel 9.

The US tech giant’s latest strategic move is reportedly making Tensor G5 the first Google smartphone chip not produced by Samsung.

According to industry insiders cited by the aforementioned report, despite Google’s relatively low smartphone market share, the act would signify TSMC’s leading position in advanced nodes, and is expected to foster closer collaboration between the two companies in the future.

According to the market share data released by Trendforce in March, in 4Q 2023, Apple ranked as 1^st in global smartphone production, with a 23.3% market share, while Samsung (15.9%) and Xiaomi (12.8%) ranked as 2^nd and 3^rd, respectively. Google, on the other hand, has not made it to the top six.

Regarding other major smartphone players’ product roadmaps next year, in addition to Google’s Pixel 10, Apple is also rumored to cooperate with TSMC on the A19 Pro chip in the iPhone 17 Pro and iPhone 17 Pro Max, based on a previous report from Wccftech.

Samsung, on the other hand, is reportedly planning to use its 2nm process on the latest Exynos 2600 chip, which is expected to start mass production in 2025, and be used in the Galaxy S26 series smartphone, according to a previous report by the Korea media outlet ET News.

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(Photo credit: Google)

Google reportedly collaborates with Samsung as its foundry partner for Tensor G4 in the Pixel 9 lineup, which is anticipated to hit the market later this year. However, the tech giant may possibly turn to TSMC in Pixel 10, using the latter’s 3nm node for Tensor G5, according to a report by Wccftech.

It is reported that, to facilitate this transition, Google has expanded its Taiwanese R&D center, enabling closer collaboration with TSMC to produce its most advanced silicon. In late April, Google opened its second hardware office in Taiwan for Pixel, Fitbit, and Nest development, located at the TPark campus in New Taipei City.

Wccftech stated that Google has changed its stance, as Tensor G3’s performance lags behind its competitors, and TSMC might help to resolve the problem. Tensor G3, manufactured utilizing Samsung’s 4LPP node, is reported to lag behind in CPU performance, if compared with Qualcomm’s Snapdragon 8 Gen2 and Apple’s A17 Pro.

The aforementioned report suggested that Google plans to utilize TSMC’s 3nm ‘N3E’ process for its advanced chipset, the same node employed in Apple’s M4 chips that power the latest iPad Pro models.

At the Google I/O 2024 developer conference on May 14th, Google unveiled its 6th generation custom chip, the Trillium TPU, rumored to be manufactured on a TSMC 3nm or 4nm process, according to a report by CTEE. It is also reported that Google has been aggressively working on its upcoming TPU models, collaborating with Taiwanese fabless companies MediaTek and Alchip. Taiwan’s largest PCB substrate manufacturer, Unimicron, is also said to be included in the Trillium TPU’s supply chain.

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(Photo credit: TSMC)