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Further tightening its hold on US semiconduction demand, Taiwan Semiconductor Manufacturing Co’s (TSMC) next-generation nano chip production technology will have Apple and Intel as early adopters ahead of its deployment next year.

The development assumes significance as there is renewed attempt from US government policy initiatives to ramp up fab manufacturing facilities to reduce China dependency. Also, Intel and Apple are coming up with varied chip manufacturing strategies.

According to sources familiar with the development, Apple and Intel are testing their chip designs with TSMC’s 3-nanometer production technology. Analysts find that commercial output of such chips are expected to start in the second half of next year.

Nanometer refers to the width between transistors on a chip. The smaller the number, the more advanced the chip, but also the more challenging and expensive they are to build.

TSMC has captured chip industry as it holds sway over smallest nanomter chips with reduced width between transistors. TSMC’s 5-nm technology is the most advanced chip production tech and widely used used for consumer products today. Here it is intersting to note that all iPhone 12 processor chips.

According to Arvian Research, TSMC 3-nm technology is going to disrupt electronic industry with its computing performance. “It is interesting to note that 3-m processor can increase computing performance by 10% to 15% compared with 5-nm. TSMC 3-nm technology will also reduce power consumption by 25% to 30%. This will really enhance performance parametres,” said Arvian Research.

Taking advantage of the new chip 3-nm chip from TSMC, Apple will launch its first device iPad most likely next year. Also, Apple is rolling out next generation iPhone after its iPhone 12 next year and will use intermdediate 4-nm technology.

Intel is much more aggressive in the new chip space as the company is going ahead with its collaboration with TSMC 3-nm chip by desinging CPUs for note books and data centre servers. The move will help the company to take advantage as an early bird adopter of technology and captire the global market. It will also place the company in good stead to compete agains rivals Advanced Micro Devices (AMD) and Nvidia.

According to Nikki Asia Review report, the race to adopt the latest chip production nanotechnology is not only a commercial pursuit, geopolitics also plays a role. “The U.S., the European Union and Japan, citing national security risks, are rushing to bring vital chip production onshore. Washington passed a $52 billion package to invest in the semiconductor industry to restore the country’s chip manufacturing leadership,” states Nikki Asia Review.

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