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Delays for 3nm chip production by Intel disrupt TSMC's expansion plans

TSMC Semiconductor

Intel is again delaying its tGPU chipset in Meteor Lake to the end of 2023, which it planned to outsource to Taiwan Semiconductor Manufacturing Company (TSMC), as TrendForce reports. The tGPU sets were previously postponed from the second half of 2022 to the first half of 2023, due to complications in their design and verification procedures.

Unfortunately for TSMC, Intel delaying the chipsets until 2023 virtually cancels the outsourcing agreement for the 3nm chip production capacity. Consequently, TSMC has decided to slow down expansion, which would otherwise lead to higher costs with its production assets being idle. TrendForce also suggests that the delay could affect TSMC’s plans for future capital expenditures in 2023.

However, it states that there are prospects to be realized in 2024 worth acknowledging. Although due to disruption of TSMC's expansion Apple has become the forerunning company producing 3nm chipsets, it still is TSMC’s major customer. While launching products like the A-17 Bionic and M-series chips under the 3nm chipsets, Apple further aims to use 3nm processors for its iPhone in 2024; therefore, TSMC could expect revenues to rise.

Apple already has Samsung and LG producing chipsets for its iPhone 14 Pro series and has 3nm chipsets kept aside for the M2 Pro and the possible M3 lineup covered by TSMC. However, it is difficult to assess whether these delays by TSMC and Intel will affect Apple’s schedule.

Source: Trendforce via MacRumors

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