TSMC Stock Soars on Robust 3nm Revenue and US Expansion Milestones
1min read Taiwan Semiconductor Manufacturing Co. (TSMC) has observed a significant surge in its 3nm process revenue, driven by robust orders from Apple for the A18 and A18 Pro chips intended for the iPhone 16 series. Revenue growth estimates for the 3nm process in 2024 have been revised upwards to reflect an increase from the previous 26-29% to 31-34%, largely attributed to the heightened demand from major clients like Apple.
TSMC's new facility in Arizona has successfully trial-produced its first batch of N4 4nm process wafers, achieving a defect rate comparable to that of its Taiwan facility. This milestone is critical for the plant, which plans to commence full-scale production in the first half of next year. TSMC's total investment in this U.S. endeavor is a staggering $65 billion, bolstered by a $6.6 billion subsidy from the U.S. government under the CHIPS Act and an additional $5 billion in loans. The Arizona site is set to house three factories, with the second and third plants focusing on 3nm and 2nm processes, although the timeline for the third factory remains uncertain.
In other developments, TSMC is preparing to install its first ASML High NA EUV lithography system at its global R&D center, a move expected to bolster its position ahead of its competitors. The high-value equipment, worth over €400 million, will support the development of future advanced processes.
The Arizona plant's trial production has notably increased the company's U.S. manufacturing capabilities. Celebratory gestures, such as giving donuts and cakes to employees, have further boosted morale. The plant expects to meet its mass production targets ahead of schedule, significantly bolstering TSMC's capacity for high-end applications like artificial intelligence (AI).
TSMC's investment in the U.S. is part of a broader trend encouraged by recent legislation and substantial government incentives. The company's high-yield trial production in Arizona dispels concerns about the feasibility of advanced semiconductor manufacturing outside Taiwan.
Industry sources indicate that Intel, facing production challenges, has transferred its sub-3nm process manufacturing to TSMC, coupled with significant global layoffs targeting its foundry business. As Intel scales back its capital expenditures and adjusts its strategic plans, the dependency on TSMC highlights the latter’s robustness in advanced semiconductor manufacturing. This reliance underscores TSMC’s pivotal role in the global semiconductor supply chain and its strategic importance in high-performance chip production.