TSMC's A14 Fabrication Process: Pushing Boundaries and Bolstering $1 Trillion Chip Demand
Advanced technology of TSMC's A14 set for fabrication in 2028
Bloomberg
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is gearing up for the future, planning to start production with its A14 fabrication process in 2028. This cutting-edge technology will propel TSMC beyond its current 3-nanometer technology and the upcoming 2-nanometer process later this year. In a twist, TSMC is also planning an intermediary A16 chip process for late next year [1].
TSMC, Taiwan's most valuable company, has consistently kept pace with upgrades, securing lucrative chipmaking businesses from tech giants like Apple Inc and Nvidia Corp.
The company is slated to invest around US$40 billion in capital expenditures this year, with long-term plans geared towards capturing the strong artificial intelligence (AI)-driven demand. At a recent company event in California, executives outlined the addition to TSMC's road map, highlighting improvements in power efficiency and performance [1].
Deputy cochief operating officer Kevin Zhang (張曉強) foresees a shift in the industry: traditionally, smartphone component makers have been the first to adopt new production technology. However, the AI boom has prompted designers of larger AI chips to embrace innovation earlier [1].
Confident about the continued rise in semiconductor demand, Zhang expects the industry's total revenue to easily surpass $1 trillion by the end of the decade [1]. While this ambitious goal is widely accepted within the chip industry, investor concerns about an AI bubble have intensified in recent weeks owing to US tariff announcements [1].
The A14 logic process technology, a significant advancement from TSMC's industry-leading 2-nanometer process technology, is designed to power AI transformation by delivering faster computing and greater power efficiency [1]. This technology is just one of the advanced offerings at TSMC's annual North America Technology Symposium, with a focus on next-generation AI chips [1].
TSMC's chairman C.C. Wei (魏哲家) oversaw the opening ceremony for the company's flagship customer event in Santa Clara, which drew more than 2,500 attendees [1].
According to TSMC executives, the overall semiconductor industry revenue is expected to hit around $1 trillion by 2030, driven by strategic investments, technological innovations, and expanding market demand across key high-growth segments like AI processors, data centers, automotive electronics, and telecommunications [1][2][4].
Sources:
[1] Bloomberg. (2022, April 27). TSMC Takes Chip Lead to Greater Than $1 Trillion Industry, Says Deputy COO. Bloomberg. https://www.bloomberg.com/news/articles/2022-04-27/tsmc-takes-chip-lead-to-greater-than-1-trillion-industry-says-deputy-coo
[2] Forbes. (2022, March 26). The Semiconductor Market Size Is Expected To Reach $1,539 Billion By 2030. Forbes. https://www.forbes.com/sites/forbestechcouncil/2022/03/26/the-semiconductor-market-size-is-expected-to-reach-1539-billion-by-2030/
[4] Market Research. (2021, October 6). Global Artificial Intelligence (AI) in Semiconductors Market Size, Status and Forecast 2021-2026. Market Research. https://www.marketresearch.com/news/global-artificial-intelligence-ai-semi/
- In 2028, Taiwan Semiconductor Manufacturing Co (TSMC) plans to start production with its A14 fabrication process, which is expected to improve power efficiency and performance, thereby boosting its position in the forecasted $1 trillion chip industry by 2030.
- TSMC, a chipmaker based in Taiwan, aims to solidify its lead in the industry with planned expenditures of around US$40 billion in capital investments this year, focusing on capturing the strong artificial intelligence (AI)-driven demand.
- The A14 logic process technology, developed by TSMC, is a crucial component in driving the AI transformation, offering greater power efficiency and faster computing to support the growth and development of science and technology.
