Producer of the next-generation chip, Taiwan Semiconductor Mfg. Co. Ltd.  (NYSE: TSMC) maiden adopters will be technology giants Intel Corporation (NASDAQ: INTC) & Apple Inc (NASDAQ: AAPL). Chip designs developed by Intel & Apple will be tested with 3-nanometer production technology by TSMC. The chips will be launched in the market in 2022’s second half. 

Increasing Computing Performance

Taiwan Semiconductor’s 5-nm technology is the extensively avant-garde chip production that is being used for consumer products. For example, iPhone 12 processor chips are developed using TSMC’s 5-nm technology. As compared to 5-nm technology, the 3-nm technology increases computing performance up to 15% compared to TSMC. In addition, the 3-nm technology also reduces power consumption by 25% to 30%.

The first device that will leverage the 3-nm technology will be Apple’s iPad. The next generation of iPhones that are expected to launch in 2022 will use intermediate 4-nm technology. In addition, with Taiwan Semiconductor, Intel is working on two 3-nm projects. These projects designed for notebooks & data center servers will facilitate Intel in giving daunting competition to its competitors, including Advanced Micro Devices & Nvidia (NASDAQ: NVDA). The chips will be produced by next year.

The Production

According to some reports, the volume of chips planned for Intel is more than Apple’s iPad. Till Intel makes its own production house to design & manufacture chips, Taiwan Semiconductor will be doing chip design and manufacturing for Intel. Till 2023, Intel will not introduce 7-nm production technology of its own in the market.  The company has delayed the launch of its latest Xeon processors that are based on 10-nm technology. Intel will release the Xeon processors in 2022. 

Pat Gelsinger, the Intel CEO, said that the partnership with Taiwan Semiconductor would facilitate Intel in achieving new heights. It’s the first time that Intel will outsource the production of chips. AMD, Intel’s competitor, witnessed a growth of 20% in 2020 in notebook processors. As a result, AMD is also planning to adopt the 5-nanometer technology of Taiwan Semiconductor.