TSMC Secures Early Orders for Revolutionary A16 Process from Apple and OpenAI

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s leading chipmaker, has reportedly secured orders for its advanced 1.6nm process, known as A16. Industry sources indicate that major clients, including Apple and OpenAI, have booked capacity for this cutting-edge technology even before it has reached mass production.

OpenAI, famous for its development of ChatGPT, is actively developing its own AI ASIC chips and initially considered building a dedicated wafer fab in collaboration with TSMC. However, after evaluating the potential benefits, OpenAI decided against constructing its own fab. Instead, it partnered with American companies like Broadcom and Marvell to co-develop the AI ASIC chips. As a result, these chips are expected to be manufactured using TSMC's 3nm technology and eventually migrate to the A16 process.

The A16 process represents a significant leap in technology for TSMC. It will employ the next-generation nanosheet transistor technology along with TSMC's Super PowerRail (SPR) architecture. Scheduled for mass production in the second half of 2026, A16 promises to deliver up to 10% faster speed at the same operating voltage or reduce power consumption by 20% at the same speed, with an impressive 1.1 times increase in chip density.

TSMC's new A16 process offers a critical innovation with its SPR back-side power delivery network. This groundbreaking technology integrates back-side power rails directly with transistors, enhancing power distribution efficiency while increasing transistor density. Initially planned for TSMC's N2P node, the back-side power delivery network will now be introduced with A16, solidifying its place as a highly advanced manufacturing process.

For TSMC, securing early commitments from technology leaders like Apple and OpenAI underscores the significance of the A16 process in the evolving semiconductor landscape. As companies increasingly demand higher performance and energy-efficient chips, TSMC's advancements position it well to maintain its leadership in the industry.

The move also highlights OpenAI's strategic importance not only in the AI sector but also in supporting technological advancements for partners like Apple. Apple's recent launch of its personalized intelligent system, Apple Intelligence, which integrates ChatGPT functionalities, suggests a close tie with OpenAI. As OpenAI continues to innovate in ASIC chip design, its influence in the AI computing domain is set to grow.

In summary, TSMC’s 1.6nm A16 process, blending nanosheet transistor technology and innovative power delivery solutions, is poised to redefine semiconductor performance standards. While mass production isn't slated until late 2026, securing orders from industry giants like Apple and OpenAI demonstrates the significant interest and confidence in TSMC's next-gen capabilities.