Apple will liable for 53% of TSMC’s 5nm chip manufacturing this yr says Counterpoint
Counterpoint Analysis expects that Apple shall be TSMC’s prime 5nm buyer this yr accounting for 53% of manufacturing due to the A14 and A15 Bionic chips and the M1. 5nm manufacturing will account for five% of 12-inch wafers this yr, up from lower than 1% final yr. Counterpoint sees Qualcomm accounting for twenty-four% of TSMC’s 5nm chip manufacturing as Apple is predicted to make use of Qualcomm’s 5nm Snapdragon 5G X60 modem within the iPhone 13. Each TSMC and Samsung are forecast to have 90% of their 5nm gear booked for 2021 with the previous grossing $10 billion from 5nm enterprise this yr.
Not like 5nm wafers, 80% of that are used for smartphones, 7nm chips are used extra extensively with solely 35% of manufacturing used for smartphones. 7nm will account for 11% of 12-inch wafer use this yr forecasts Counterpoint. Each TSMC and Samsung manufacture quite a lot of 7nm chips together with these made utilizing EUV. Excessive Ultraviolet lithography makes use of beams of UV mild to etch out extraordinarily skinny patterns on wafers to assist engineers create circuits. The usage of EUV has helped foundries take their course of nodes right down to the present 5nm with 3nm quantity manufacturing beginning subsequent yr.
This yr, TSMC’s prime buyer for 7nm shall be AMD; the latter will account for 27% of such manufacturing in keeping with Counterpoint. NVIDIA is subsequent at 21% adopted by MediaTek at10% and Intel with 7%. Sure, the latter does have its personal fab, however its capabilities are behind TSMC and Samsung Foundry on the subject of course of node. The analysis agency says that Intel’s resolution to outsource is one vital to keep up the long run survival of the chip maker.Apple will take 6% of TSMC’s 7nm output this yr because it nonetheless wants 7nm chipsets for a few of its older handsets.
Counterpoint notes that larger stock of chips, now as much as 79 days from 70 days since 2016, is as a result of pandemic, international commerce battles, and different points. Consequently, the chip business will get acclimated to larger ranges of stock over the course of the yr. Counterpoint sees annual income within the business reaching $100 billion by 2022-2023.