TSMC launching 20nm chips next year

tsmc fab12

tsmc fab12 (Photo credit: Tony Tseng)

TSMC’s CEO stated at its annual supply chain forum that the 20 nm system-on-a-chip is the most critical ramp up TSMC has carried out in years. The high volume production of 20nm chips will start next month.

Apple’s A8 processor is in 20 nm, and TSMC has already secured a 3-year agreement with Apple to supply foundry services for Apple’s A-series processors from 20 nm down to 10 nm process nodes.

The capital investment at TSMC enables it to process 50,000 wafers in the first quarter of 2014.TSMC is expected to sip 165,000 20 nm chips to Apple next year. Revenue for 28 nm is expected to be $5.4 billion this year.

TSMC’s two key customers will be Qualcomm and Mediatek. Apple will account for 6.5 percent of TSMC overall revenue for 2014.

Looks like mobile processors and modems will continue to be critical for the foundry business in 2014.

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