TSMC Unveils Game-Changing A16 Chip, Already Drawing Major Pre-Orders from Apple, OpenAI

Word on the StreetMonday, Sep 2, 2024 4:18 am ET

1min read

TSMC's cutting-edge Angstrom-level A16 chip has caused a sensation in the industry even before it has been mass-produced. According to media reports, tech giant Apple and the AI world's hotshot OpenAI have pre-ordered TSMC's A16 chips.

1 angstrom is equivalent to one-tenth of 1 nanometer. After the semiconductor process has broken through the 2-nanometer technology, angstrom will be the climbing goal for the world's leading chip companies.

The A16 chip is TSMC's most advanced process node that has been revealed so far, and it is also TSMC's first step into the Angstrom process, scheduled for mass production in the second half of 2026.

Although TSMC's A16 process has not yet been mass-produced, the first batch of customers has already emerged. It is reported that Apple has continued its cooperation with TSMC and has pre-ordered the first batch of TSMC's A16 production capacity; OpenAI's move to pre-order A16 from TSMC is also highly eye-catching, as it has long-term demand for its ASIC chips and has joined the ranks of those pre-ordering A16 production capacity.

At the beginning of the year, there were reports that in order to reduce dependence on purchased AI chips, OpenAI's CEO Sam Altman planned to raise $700 billion and actively negotiated with TSMC to cooperate in building a wafer factory for the development and production of its own AI chips. However, after evaluating the development benefits, OpenAI shelved the plan.

It is expected that the orders from Apple and OpenAI will become an important driving force for TSMC's development in artificial intelligence.

According to TSMC, the A16 will adopt the next-generation nanosheet transistor technology and use the Super Plateau Transistor (SPR) technology. SPR technology moves the power supply lines to the back of the wafer, releasing more signal line layout space on the front to increase logic density and performance. It is an original and industry-leading backside power supply solution.

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