TSMC’s 3nm Supply Runs Short Amind Huge AI Demand: NVIDIA, Apple, AMD, Qualcomm Consider Raising Chip Prices
NVIDIA, Apple, AMD & Qualcomm are now opting for price hikes for their in-demand AI hardware as TSMC's 3nm supply becomes more scarce.
TSMC's 3nm Process Becomes The "Holy Grail" For The Markets: Entire Supply Reserved Until 2026 While Tech Giants NVIDIA, Apple, Qualcomm and AMD Considering Price Hikes
The AI industry is evolving rapidly, which has prompted a massive need for relevant resources. TSMC (Taiwan Semiconductor Manufacturing Company) is deemed responsible for most of the industry's semiconductor needs, and customers like Apple, Qualcomm, NVIDIA, and AMD depend upon the Taiwan giant for their respective chip products. Due to this, it is now being reported that IC design companies are opting for considerable price increases since TSMC's supply and demand chain is now unbalanced, given that their high-end 3nm process has witnessed gigantic demand.
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Taiwan Economic Daily reports that TSMC's 3nm supply is now reserved by the top four tech giants: Apple, Qualcomm, NVIDIA, and AMD. With that, orders are reported to be fulfilled up to 2026. Even though TSMC's 3nm production capacity has almost tripled compared to last year, the industry demand is now at its peak. It is said that the firm's N3 process has seen massive demand from the AI segment, with its integration into current-gen AI accelerators, and along with that, TSMC's N3P node will witness widespread adoption from the mobile segment, so overall, the 3nm lineup is pretty occupied.
In terms of price increases by TSMC themselves, we haven't witnessed any confirmed development yet. However, the firm has a history of price bumps based on process value rather than opportunities, and the Taiwan giant has shown their commitment to ensuring that they work "strategically" with their close partners. However, with the 3nm supply becoming insufficient, it would likely be that chipmakers
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