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Samsung to ship 5nm chips for NVIDIA, TSMC for Intel
eighteen.eleven.2021 [11:32],
Alexey Razin

TrendForce experts expect contract manufacturers of semiconductor components to increase their revenues by 23.8% by the end of this year, and this will be the largest increase in ten years. Manufacturers will add most of all in the direction of processing silicon wafers with a standard size of 200 mm and in the development of advanced technological processes.

Image source: TSMC

As noted more than once, the pandemic has catalyzed the growth in demand for semiconductor components used in a wide variety of industries. These phenomena were superimposed by the beginning of the expansion of cellular networks of the 5G generation and compatible smartphones. According to TrendForce representatives, contract component manufacturers will experience problems with full order satisfaction until mid-2021. Since the need to master 3-nm and 4-nm technologies loomed on the horizon, ASML lithographic equipment with EUV technology support turned out to be in great demand.

On the other hand, there is still a shortage of production capacity for processing silicon wafers with a standard size of 200 mm using mature technological processes. It is not so easy to increase production capacity, since the specialized equipment has already ceased to be produced. Migration from a standard size of 200 mm to 300 mm has slowed down significantly, but it will not be possible to solve the problem of a shortage of production capacity in the near future.

According to TrendForce, Apple is now the only TSMC customer receiving 5nm processors, as US sanctions have ruled out the supply of such products for Huawei’s needs. In the second half of the year, the equipment utilization rate on TSMC lines producing 5-nm products will drop to 85-90%. In the future, this figure will increase, but this will happen already in 2021.

Image source: TrendForce

According to the source, TSMC will master the release of Apple A15 processors using an improved version of 5nm technology in 2021. At the same time, the release of 5nm AMD processors with Zen 4 architecture will begin, but the demand for specialized services from TSMC will begin to grow more actively towards the end of 2021, when MediaTek, NVIDIA and Qualcomm will start receiving their 5nm products from TSMC. It is alleged that in 2022 TSMC will even release the first batch of 5nm CPUs for Intel. Apple plans to release 4nm A16 processors by then using TSMC forces.

Samsung Electronics will use its production facilities to produce not only its own 5nm mobile processors of the Exynos family, but also Qualcomm Snapdragon 800 series processors, as well as NVIDIA next-generation Hopper GPUs. And yet, the Korean competitor will lag behind TSMC in 5nm production volumes by about 20%.

In the future, Qualcomm is expected to switch to TSMC 4nm technology for the release of Snapdragon 895 processors, so NVIDIA and Samsung’s own processor development division will remain Samsung’s main customers. The release of 5nm Intel processors will be handled by TSMC, this Taiwanese company should maintain its leadership in this segment after the transition to 3nm technology.

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