TSMC plans to sell its 3nm processors for $20,000 per wafer. Contract prices for big companies like Apple, Intel, or Nvidia are likely to be lower, but those increased costs will still hit consumers’ wallets.
The DigiTimes site showed the evolution of wafer prices starting with TSMC’s 90nm process in 2004, which cost $2,000 – 1/10th the price of the future N3 wafer. Early estimates indicate that costs per wafer for 3nm processors will increase by 25% compared to TSMC’s 5nm process (which cost around $16,000 per wafer).
Prices for the 3-nanometer node are rising primarily because the tools to build them are expensive. The scanner used by TSMC for extreme ultraviolet (EUV) lithography costs about $150 million, and factories need several of these. The N5 process requires 14 lithographic layers, and the N3 requires even more.
Samsung’s performance issues with its 4nm and 3nm processes leave TSMC as the semiconductor leader. Qualcomm initially partnered with Samsung to produce its new chips, but had to rely on TSMC to build the Snapdragon 8 Gen 2.
Qualcomm talked about the features of Snapdragon 8 Gen 2 – ARM Cortex-X3, Wi-Fi 7 and Snapdragon X70 modem
Learn to design web interfaces that customers will love in your spare time and earn from $1000
REGISTER!
Semiconductors are far from the only, but one of the important elements affecting the prices of components and electronics. In September 2022, after demonstrating the incredibly expensive RTX 4000 series video cards, Nvidia CEO Jensen Huang announced (again) that Moore’s Law is dead. TSMC’s price hikes may lend additional force to Huang’s claim.
Apple could become TSMC’s biggest customer hit by price hikes. The upcoming A17 Bionic chip for the iPhone 15 will use the Taiwanese company’s 3nm process, and Apple has been reluctant to accept TSMC’s price hike. Last year, the Cupertino-based company accounted for a quarter of TSMC’s sales.
More expensive semiconductors can affect the cost of game consoles. In August, Sony raised the price of the PlayStation 5, citing supply chain issues, inflation and manufacturing costs. Microsoft also acknowledged that it will eventually have to raise the prices of its Xbox series of consoles, probably next year.
Source: Techspot
