TSMC, the global leader in chip manufacturing, recently faced an unexpected twist: the chip process race is slowing down! Reports suggest a significant shift as Apple, TSMC’s largest client, decides not to adopt the upcoming 2nm process. This news has sent shockwaves across the semiconductor industry.
Key Highlights:
TSMC’s Market Dominance:For years, TSMC has led the industry, almost monopolizing advanced chip-making technology. Smartphone makers would race to adopt its latest advancements to stay competitive.
Change in Trends:Apple, a major contributor to TSMC’s revenue (nearly 25%), reportedly plans to use 3nm technology for its 2025 A19 processor, instead of TSMC’s new 2nm process.
Development Timeline Slows:The industry norm of introducing new processes every two years is breaking. The shift from 5nm to 3nm already took three years, signaling a slowdown.
Why Is This Happening?
Performance Needs Are Met:Current chip capabilities far exceed daily requirements. For example, owning a 300 km/h car makes little sense if you only drive at 120 km/h.
Cost Factor:Advanced processes are becoming increasingly expensive. Even a tech giant like Apple is feeling the financial strain.
Market Observations:
Consumer Priorities Shift:Huawei’s success with older chip processes shows that users care more about overall experience than just advanced specs. Meanwhile, Apple’s sales have declined despite using the most advanced chips.
Impact on TSMC:Apple’s decision may impact TSMC’s revenue, but it also provides an opportunity for competitors to catch up.
A Silver Lining for Chinese Chipmakers:
The slowdown in TSMC’s advancements opens a window of opportunity for emerging players. This “pause” in the race could allow competitors to close the gap and innovate at their own pace.Final Takeaway:The race for smaller chip processes may no longer be as critical as before. Instead of a relentless focus on numbers, the industry is shifting toward practical applications and user experience.
This slowdown isn’t a setback but a chance for sustainable growth. For China’s chip industry, this is a rare opportunity to accelerate development and strengthen its position globally. Let’s watch how this new chapter in the chip race unfolds!
