Next-generation electronics could be much more expensive as TSMC’s 3nm chips cost US$20,000 apiece.

Nvidia President Honcho Jensen cited rising foundry costs as one of the main reasons for the company’s high-priced graphics cards. Semiconductor chip prices have skyrocketed over the past few years, in part due to the complexity associated with manufacturing and TSMC’s market dominance. According to a new report from Digitimes, high-end consumer products slated for release in 2023 will only get more expensive.

TSMC’s 3nm chip is supposed to cost US$20,000, twice the price of 7nm chips in 2018. Retired engineer on Twitter The amount may be higher. This is likely for chips manufactured on the TSMC N3E node, which is a power-efficient version of the now ill-fated N3 node. While a price increase may not be immediately apparent, one can expect to see it in the coming quarters, mainly because most of the current generation semiconductors are still in the TSMC N5 family (N5P, N4, N4E, N4X, 4N) .

Several industry luminaries such as Nvidia, Qualcomm, Apple and MediaTek have called dibs on TSMC’s production capacity in 2023 and 2024. Some of the affected products could include smartphones powered by Qualcomm Snapdragon 8 Gen 3 and MediaTek Dimensity 10,000. (tentative), iPhones powered by A17 Bionic processors, Apple M3 MacBooks, and Ryzen 9000. Higher prices combined with limited capacity may force some companies to stick with the N5 family for a generation or two longer than they intended.

Digitimes adds that Samsung’s inability to keep up with TSMC in the market is also a factor for the price hike. Yields of the 3nm GAA process are still below par, and there’s no indication if that will improve anytime soon. Twitter leaker RGCloudS He says revenues are expected to reach 70% by April 2023. While that’s not as good as TSMC’s, further improvements could make Samsung competitive again, perhaps enough to attract Qualcomm and Nvidia.

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