TSMC’s most advanced technology currently in mass production is based on 3 nanometers. According to the report in the Taiwanese press, the costs of 3 nanometers and the new 2 nanometers, which are expected to increase significantly in the future, will drag the artificial intelligence market to the bottom.
TSMC’s increasing production costs seem to radically change the market!
With this news coming towards the end of 2023, analysts reported that cost increases may affect the production processes of Apple’s products. They also stated that the cost per plate of TSMC’s 2 nanometer technology could reach up to 30 thousand dollars.
Despite experiencing a decrease in revenues due to the difficult economic process, companies such as TSMC maintained their values. But things can turn around. It is stated that TSMC’s current 3 nanometer plates cost approximately 20 thousand dollars.
TSMC works on 1.4 nanometer processors!
TSMC talked about 1.4 nanometer processor technology for the first time and gave a date for mass production. So when will we switch to 1.4 nm processors?
However, it is said that the cost per plate may rise up to 25-30 thousand dollars in the new production process. Reports state that the biggest impact of the 50 percent price increase on 2 nanometer products will be on Apple. This situation may reflect the price increase on the market with Apple products.
In the future, it may be seen that the budgets of companies such as AMD and NVIDIA are also strained. It is also said that NVIDIA will use 3 nanometer technology in its next generation graphics processors, and the burden of high chip costs for the first wave of 2 nanometer production will fall directly on Apple’s shoulders.
Because their processors and graphics processors have higher power, AMD and NVIDIA are generally insulated against the high costs of initial mass production of advanced chip technologies. However, the $20,000 3-nanometer wafer may become more expensive as demand exceeds previous capacity.
Companies such as TSMC and Samsung have fixed capacities, and if they are convinced that demand will exceed supply, the initial investment cost for new facilities is usually passed on to the customer. TSMC, in particular, will think twice before over-expanding production after the harsh nightmare it experienced last year.
So what do you think about this news? You can share your ideas in the comments section.