https://wccftech.com/intel-grabs-majority-tsmc-3nm-capacity-4-server-graphics-chips-production-q2-2022/

Intel Grabs Majority of TSMC’s 3nm Capacity, 4 Products Including A GPU & 3 Server Chips In The Works With First Delivery In Q2 2022

Aug 12, 2021 06:27 EDT

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Quoting its sources within the supply chain, Chinese media outlet, UDN, has reported that Intel has grabbed the majority of TSMC's 3nm process node orders for the production of its next-generation chips. The news outlet quotes that production is expected to commence at TSMC's 18b Fab during Q2 2022 and mass production is expected to commence by mid of 2022. The production capacity is expected hit 4,000 wafers by May 2022 and would reach 10,000 wafers per month during volume ramp.
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Intel, the semiconductor pioneer whose co-founder is Gordon Moore, who in 1965 posited that the number of transistors on integrated circuits would double approximately every two years (aka Moore's Law), will be buying TSMC's leading-edge 3nm chips

In Moore We Trust

Source: Nasdaq

Will TSMC Be a Trillion-Dollar Stock by 2025?

AUG 11, 2021 6:15AM EDT

Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE: TSM) is the world's largest and most advanced contract chipmaker. Many leading "fabless" chipmakers -- including AMD, Qualcomm, and Apple -- rely on TSMC to manufacture their smallest and most powerful chips.

Thanks to the market's growing appetite for new chips, TSMC's revenue has surged over the past few years, and its stock hit an all-time high this February. The stock has advanced more than 300% over the past five years -- but it could climb even higher as the global chip shortage generates fresh tailwinds.

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Why TSMC might hit $1 trillion by 2025

Many analysts and chipmakers believe the global chip shortage, which was exacerbated by the pandemic, will last through 2023. The secular growth of the 5G, Internet of Things (IoT), home automation, data center, and consumer electronics markets should keep supplies low.

Based on these expectations, the global semiconductor foundry market could grow at a compound annual growth rate (CAGR) of 7.3% from 2021 to 2026, according to Mordor Intelligence. If TSMC matches analysts' expectations for $56 billion in revenue this year and keeps pace with that estimated CAGR, it could generate $74 billion in revenue in 2025 and $80 billion in revenue in 2026.

TSMC currently trades at about 13 times trailing sales. If it maintains that price-to-sales (P/S) ratio until 2025, it would be worth just over $960 billion. But as a market leader, TSMC could grow faster than the broader foundry market -- which also includes slower-growth companies like UMC and GlobalFoundries.

Between 2015 and 2020, TSMC actually grew its revenue at a CAGR of 11.8% in USD terms. If TSMC outpaces the projected growth of the broader market with a CAGR of 9% from 2021 to 2026, it could generate roughly $79 billion in revenue in 2025. Multiplying that figure by 13 would give us a market cap of $1.03 trillion

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What's great for TSMC will be great for Frontken

https://www.marketwatch.com/story/amd-stock-gets-an-upgrade-with-analysts-mea-culpa-11628519331

AMD stock gets an upgrade with analyst’s ‘mea culpa’

Formerly bearish analyst admits his prior call on AMD missed the mark

Published: Aug. 9, 2021 at 10:28 a.m. ET

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Srivastava downgraded AMD’s stock AMD, -1.02% to underperform back in January, after Intel Corp. INTC, -0.20% named a new chief executive, on the assumption that part of AMD’s strength reflected missteps from rival Intel that a new CEO could help fix. But as AMD has continued to gain traction in recent months, Srivastava is bumping his rating back up to market perform in a note titled: “Mea Culpa Time.”

Srivastava previously thought that estimates for AMD would prove to be overly optimistic, but earnings estimates for 2021 and 2022 are now up sharply since his January downgrade, and he predicts “continued upward bias” ahead, “especially as AMD starts to ramp designs it has already won on the datacenter side, from the HPC to enterprise, including CPUs and GPUs.” While investors may anticipate those wins, he doesn’t see them “appropriately reflected in current estimates.”

Though Srivastava still expects that AMD’s share gains at the expense of Intel will moderate next year, he acknowledges that the company “has now executed and delivered to a point that it has carved out a position as a viable alternative to Intel for the foreseeable future.”

He boosted his target price to $110 from $80.
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*As mentioned TSMC (and its process technology leadership) is the reason AMD has taken market share from Intel in the datacentre, as well as other segments

https://www.taiwannews.com.tw/en/news/4263821

Headline: 2nm fab of Taiwan's TSMC to fend off competitors by feeding smartphone, HPC demand

High-Performance Computing (HPC), smartphone demand, competition from Intel and Samsung have pushed TSMC to innovate faster

By Sam Reynolds, Taiwan News, Staff Reporter

2021/08/04 18:05

TAIPEI (Taiwan News) — It may be lonely at the top, but Taiwan Semiconductor Manufacturing Company (TSMC) intends to stay there.

To do so, the world’s largest contract chipmaker is accelerating work on its 2nm (nanometer) process node, while keeping an eye on competition from Intel and Samsung. TSMC is wary it will miss out on the chance to produce the chips needed for ever-expanding data centers and the next generation of thin-and-light smartphones if it does not innovate to stay ahead of its U.S. and South Korean rivals.

“TSMC uses leading-edge nodes to address smartphones and high-performance computing (HPC) markets, primarily. We should expect smartphone and data center customers to be adopting 2nm when it is available,” said Strategy Analytics semiconductor analyst Sravan Kundojjala. “A strong roadmap is important for TSMC to maintain its foundry leadership and competitiveness. The company will see increased competition from Intel and Samsung foundries in the future. So, this is a significant development for the company and the industry.”
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That could be easier said than done. TSMC plans to launch 3nm chips at the end of 2022, while Intel will roll out 7nm process technology at roughly the same time. Now that TSMC expects to have 2nm chips ready by 2023, Intel’s chances of catching up soon look remote.

Samsung’s chances are not much better. The South Korean firm is strong in dynamic random access memory (DRAM), but it invests far less than TSMC in contract manufacturing. TSMC has an edge in advanced semiconductors like the central process units (CPUs) that act as the computing brains of smartphones.
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UMC not UWC. Learn to read

https://www.theedgemarkets.com/article/taiwans-july-exports-hit-record-high-optimistic-outlook-tech

Taiwan's July exports hit record high, optimistic outlook on tech
Reuters
August 09, 2021 16:58 pm +08

TAIPEI (Aug 9): Taiwan's exports rose for a 13th straight month in July with the stronger-than-expected pace setting a new record, as the island's manufacturers rushed production to meet a global shortage of computer chips for cars and technology gadgets.

Exports rose 34.7% from a year earlier to US$37.95 billion last month, the Ministry of Finance said on Monday, the highest monthly figure on record.
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Electronics exports hit a record high in July at US$14.67 billion, with semiconductor exports growing 34.3% from a year earlier.
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Taiwan = TSMC

For comparison 2nd Quarter 30 June 2021,
1) TSMC
Revenue: USD $13.3 billion
Net Income: USD $4.8 billion
2) UMC
Revenue: USD $1.83 billion
Net Income: USD $426 million
TSMC's profit is 10 times larger than UMC

When gross margins are close to 50% with capital expenditure of US $28 billion in 2021 and US $100 billion in next 3 years (for TSMC), the cost for a specialised service (eg Frontken's precision cleaning) on highly specialised and very expensive frontend semiconductor equipment is immaterial

Samsung's chips are inferior to TSMC's leading edge chips irrespective of the process node

TSMC's transistor density surpasses Samsung's for 5nm (source - https://www.hardwaretimes.com/samsungs-3nm-node-expected-to-be-less-denser-than-intels-7nm-and-tsmcs-5nm/)

The reason the fabless / chip designers order from Samsung is because they are UNABLE to get any capacity from TSMC

In other words, TSMC has to reject them (e.g. Qualcomm Snapdragon 888 SoC recently) because all TSMC's capacity has been booked by their leading customers such as Apple and AMD

In fact the main reason for AMD taking the technology lead and market share from Intel in the server and data centre segment is due to TSMC

TSMC's process node technology is superior by far and unmatched by any foundry

https://www.phonearena.com/news/tsmc-5nm-3nm-chip-production-all-booked-up_id134151

TSMC 5nm and 3nm chip production reportedly all booked up

Aug 05, 2021, 5:08 PM


Foundry TSMC has become the most valuable publicly-traded company in Asia, topping tech conglomerate Tencent. And here's one of the reasons why TSMC is red hot: ITHome (via Wccftech) says that the company's 5nm assembly lines are completely booked up and are running at full capacity. And a new report says that TSMC's 3nm production is fully booked as well.

Thanks to the chip shortage, TSMC has had to give priority treatment to its most lucrative customers such as Apple, which reportedly placed an order with the foundry for 100 million A15 Bionic chipsets. These chips will be manufactured using the N5P node which is an enhanced version of the 5nm node used to build the A14 Bionic chipsets that power the iPhone 12 series.


TSMC's 5nm and 3nm production is believed to be sold out
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TSMC is reportedly working hard to produce 2022's 3nm A16 Bionic chip for the iPhone 14 line by the second half of that year. Manufacturers not able to book orders with TSMC might have to consider working with Samsung Foundry. According to so-called experts, Samsung's technology is inferior to TSMC's, but companies like Qualcomm, which is using Samsung to manufacture the Snapdragon 888 SoC, might have no opportunity to book orders with TSMC.

If there are any openings at TSMC by late 2022, there is talk of Qualcomm switching to the foundry to produce the Snapdragon 898 Plus chipset using the 4nm process node. Currently, Samsung produces the Qualcomm Snapdragon 888 chipset using a 5nm process.

https://www.digitimes.com/news/a20210805PD211.html

TSMC to land sub-7nm chip orders from Qualcomm, Nvidia
DIGITIMES Thursday 5 August 2021

TSMC is expected to grab major sub-7nm chip orders from Qualcomm and Nvidia in 2022, according to industry sources.

https://www.taiwannews.com.tw/en/news/4264237

Demand for Taiwan’s semiconductor industry to stay strong next year

Several companies predict demand will exceed supply through 2023

2021/08/04 19:40

According to the updated foundry capacity forecasts for next year by Taiwan Semiconductor Manufacturing Corp. (TSMC) and United Microelectronics Corporation (UMC), the semiconductor manufacturing industry leaders will still fall short of fulfilling the overwhelming market demand for their product, according to UDN. Taiwan’s ASE Group, the world's largest integrated circuit packaging and testing firm, also predicted strong orders well into next year.

Speaking at a conference, TSMC CEO C.C. Wei (魏哲家) revised original estimates for the annual growth rate of the semiconductor sector’s output value (not including the memory market) from an increase of 12% to 17%. The output value for foundries has also been revised from a projected rise of 16% to 20%, positioning TSMC to generate revenue that well exceeds the industry average.

UMC will also benefit from running at full capacity and has revised upwards the average sales price increase this year from the original estimate of 10% to 13%. General Manager Wang Shih (王石) predicts wafer foundries will not be able to keep up with demand through next year.

ASE Head of Operations Wu Tien-yu (吳田玉) pointed out at a conference that demand in the packaging and testing sector will also exceed supply through next year. Wu said there may be overlapping orders and inventory adjustments in the semiconductor industry, but they should be partial and temporary, with limited impact overall.

Applied Materials, a U.S.-based company that supplies manufacturing systems used by semiconductor foundries, said this is the beginning of a “golden decade for investment” and that the next few years will see healthy growth across the sector.

Research firm IC Insights estimated that the global market’s strong demand for integrated circuits will exceed US$500 billion this year for the first time. That number is expected to grow even higher over the next two years to exceed US$600 billion, with global sales riding the wave of emerging technologies such as 5G, artificial intelligence, AR, VR, deep learning, and other new applications.
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In Moore we trust

https://www.taiwannews.com.tw/en/news/4262986

3-nm chip factory on track for mass production next year: TSMC

Manufacturer says trial production will begin this year

2021/08/02 20:17

TAIPEI (Taiwan News) —Taiwan Semiconductor Manufacturing Co (TSMC) said that construction of its 3-nanometer plant is on schedule to reach mass production in the second half of 2022, reported CNA.
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According to TSMC, of Fab 18’s installation phases for 5-nanometer chips, phases one, two, and three have already begun production, while phase four is under construction. Phases five, six, seven, and eight of Fab 18 are to follow and will be for manufacturing 3-nanometer chips.

TSMC spokespeople said the company will begin trial production this year and reach mass production in the second half of next year, regardless of what is rumored in the markets.
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The world cannot get enough of TSMC leading-edge semiconductor chips

https://www.theedgemarkets.com/article/global-semicon-sales-29-yoy-june-us445-billion-demand-expected-keep-rising-says-sia

Global semiconductor sales up 29% y-o-y in June to US$44.5 billion, demand expected to keep rising, says SIA

August 03, 2021 08:46 am +08

KUALA LUMPUR (Aug 3): Global sales of semiconductors rose 29.2% year-on-year in June 2021 to US$44.5 billion, from US$34.5 billion a year earlier, according to the U.S.-based Semiconductor Industry Association (SIA).

In a statement on its website Aug 2, SIA said sales in June were 2.1% more than the May 2021 total of US$43.6 billion.

It said sales during the second quarter of 2021 were US$133.6 billion, an increase of 29.2% over the second quarter of 2020 and 8.3% more than the first quarter of 2021.

https://www.channelnewsasia.com/news/business/chips-are-down-semiconductor-shortage-15352778

The chips are down: Why there's a semiconductor shortage
01 Aug 2021 11:59AM

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But factories cannot open overnight - particularly those that make semiconductors, a delicate process that involves pressing layers of chemicals into silicon.

"Building new capacity takes time - for a new fab, more than two-and-a-half years - so most expansions that are starting now will not increase the available capacity until 2023," said Ondrej Burkacky, senior partner and co-leader of the global semiconductors practice at consultancy McKinsey.

He added that long-term factors also meant global demand was in "hyper growth", such as the trend towards companies storing their data in the cloud, requiring more and more data centres to be built - sites that use huge quantities of chips.

https://www.reuters.com/technology/stmicros-average-chip-prices-up-5-so-far-this-year-ceo-says-2021-07-29/

No end to global chip shortage before H1 2023, STMicro CEO says
July 30, 2021 | 12:06 AM +08

PARIS, July 29 (Reuters) - The global chip shortage that is hindering production forecasts of giant companies like Apple Inc (AAPL.O) and Volkswagen AG (VOWG_p.DE) is here to stay until the first half of 2023, the chief executive of STMicroelectronics (STM.BN) said on Thursday.
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The chip shortage, which stems from a boom in demand from a wide range of industries, is stimulating prices, said Chery, who has led the Franco-Italian chipmaker since 2018.

The average price of STMicro's chips has increased by 5% in 2021 from a year ago, he said, adding that the group expects further price increases in the second-half of 2021 as well as in 2022.

https://www.reuters.com/article/amd-results-idUKL4N2P33WE

UPDATE 2-AMD forecasts revenue above estimates on strong chip demand
JULY 28, 2021 | 4:23 AM

“We do have confidence that we can continue to grow substantially as we go into the second half of this year and into 2022 with the supply chain,” said Su.

AMD projected third-quarter revenue of about $4.1 billion, plus or minus $100 million, compared with analysts’ estimates of $3.82 billion, according to Refinitiv IBES data.

The company’s revenue for the second quarter almost doubled to $3.85 billion. Analysts on average had expected $3.62 billion.

Sales in AMD’s computing and graphics segment, which includes graphic chip sales to data centers, rose 65% to $2.25 billion, beating analysts’ estimate of $2.17 billion, according to market research firm FactSet.

Its enterprise, embedded and semi-custom segment, the unit that houses data center chips, jumped nearly three-fold in sales to $1.60 billion.

“We believe that the data center business will continue to be a strong driver for us into the second half of the year,” Su told analysts on a conference call.

https://finance.yahoo.com/news/apple-q3-earnings-2021-151100000.html

Apple earnings: Huge iPhone 12 sales beat analyst expectations
Daniel Howley Technology Editor
Wed, July 28, 2021, 4:38 AM

Apple (AAPL) reported its Q3 2021 earnings after the closing bell on Tuesday, beating analysts' expectations on strong iPhone sales performance and overall revenue growth of 36% year-over-year.

Here are the most important numbers from Apple's report and what Wall Street was expecting, as compiled by Bloomberg.

Revenue: $81.4 billion versus $73.8 billion expected

Earnings per share: $1.30 versus $1.01 expected

iPhone revenue: $39.57 billion versus $34.5 billion expected

Services revenue: $17.49 billion versus $16.3 billion expected

Mac revenue: $8.24 billion versus $7.99 billion expected

iPad revenue: $7.37 billion versus $7.13 billion expected
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“Asia supply chain builds for iPhone 13 are currently in the 90 million to 100 million unit range compared to our initial iPhone 12 reads at 80 million units (pre-COVID) and represents a 15% increase [year-over-year] out of the gates,” Ives wrote.


Latest update is ordered 100million A15 chips from TSMC to produce 100million handsets

https://www.macrumors.com/2021/07/26/apple-orders-100-million-a15-chips/

Apple Reportedly Orders 100 Million A15 Chips for Upcoming iPhone 13
Monday July 26, 2021 3:30 am PDT

Apple has ordered more than 100 million of its "A15" chips to be produced by supplier TSMC, as it prepares to launch its upcoming iPhone 13 lineup, according to supply chain sources cited by CNBeta.

Apple is expecting the upcoming line-up to be high in demand and has reportedly asked its suppliers to boost production by more than 25% for this year's new iPhone. With the boost, the company's suppliers are expected to produce 100 million handsets, compared to the 75 million it initially produced for the 2020 iPhones. According to today's report, Apple has ordered 100 million A15 chips to be produced using TSMC's enhanced 5nm process.

https://www.reuters.com/technology/asml-q2-net-profit-jumps-38-strong-demand-computer-chips-2021-07-21/


ASML's order book fills as chip makers race to boost capacity
July 21, 2021 4:59 PM +08

ASML, based in Veldhoven, in the south of the Netherlands, is the leading maker of lithography systems used to produce semiconductors. Each machine can cost up to 200 million euros.

Orders for lithography systems reached a record 8.3 billion euros in the second quarter, boosting an order book that was 75% larger than at the end of the first quarter.

ASML reported orders worth 4.9 billion euros for its extreme ultraviolet (EUV) machines used to manufacture advanced chips.
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"Clients are structurally increasing capacity on the back of the digitalisation wave," ING analyst Marc Hesselink wrote in a note. "Overall there is a very positive tone on demand for 2021 and beyond."

ASML, which reported second quarter net profit up 38% at 1.02 billion euros ($1.2 billion), lifted its 2021 sales growth outlook to 35%.
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The bulk of ASML's sales are to Taiwan and South Korea, with China ranked third and the United States fourth.

https://www.theedgemarkets.com/article/car-chip-shortage-abate-smartphones-could-be-next-industry-execs

Car chip shortage to abate, smartphones could be next: industry execs
Lisa Pauline Mattackal & Aaron Saldanha
Reuters

July 23, 2021 20:07 pm +08
BENGALURU (July 23): The semiconductor shortage that has gripped the world could last well into 2022 and hit smartphone production next, foreshadowing deficient supply for a range of appliances and industrial equipment, industry executives and an economist said.
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ASML, one of the world's biggest suppliers to semiconductor makers, hiked its sales outlook this week on strong orders as chip giants such as TSMC and Intel raced to boost output.