TSMC’s chip capacity has become a real bottleneck for companies in the AI race, and a new report shows that the 3nm node is in high demand in key segments of the industry.
Apple & NVIDIA are Major 3nm Clients, and Supply Shortages Are Actually Helping Them Keep Up With Competition
We have already discussed that TSMC’s chip manufacturing capabilities are under pressure, as every major entity in the AI race relies on the Taiwanese giant. From GPU and CPU manufacturers to hyperscalers and other consumer segments, almost everyone today wants to place an order with TSMC, but the chip giant’s capacity is not enough. According to a DigiTimes report, TSMC’s 3nm supply is very limited, making it difficult for businesses to continue with their product plans without making aggressive changes. Among all customer categories, it is said that only long-term “loyal” customers receive their products.
This is not only caused by continuous price increases due to supply shortages, but also due to insufficient capacity making it difficult to win business. All this makes procurement and capacity allocation the biggest operational challenges today.
– DigiTimes
Manufacturers like Apple and NVIDIA are likely among the biggest beneficiaries of the supply shortage at TSMC, given that not only do they have exclusive access to production lines, but, as dominant customers, they also leave little room for competitors to place orders. NVIDIA’s close relationship with TSMC also makes them the exclusive client for processes like A16, meaning that, in the long term, “loyal” customers will benefit from this shortcoming, helping them beat the competition in the AI field.
At the same time, demand for TSMC’s high-end nodes is also driven by consumer product companies, such as Intel and AMD, but the allocations they receive are much lower than those received by the AI sector. Similarly, ASIC manufacturers have also taken over a large part of the semiconductor supply chain, but their access to TSMC’s 3nm supply is also limited, which again creates problems in increasing production volumes. Since relying solely on TSMC will not work for companies looking for capacity, DigiTimes accepts that the only alternative left is to contact other foundries.
In terms of external volume, after TSMC, Samsung Foundry has gained significant attention recently, driven by clients such as Tesla and Apple, as well as potential clients such as AMD. In addition to Samsung, Intel Foundry is also being explored by an impressive range of manufacturers, but for now, there are few signs that the attention will translate into volume. The main question now is whether the company is ready to diversify their foundry partners, as this not only entails microarchitectural switching costs but also risks losing the relationship with TSMC.
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