The 3nm chip process is currently the world's most advanced process technology, which can achieve higher performance and lower energy consumption chips. TSMC and Samsung have successfully achieved mass production of 3nm chips, and heavyweight customer Apple has also released the A17Pro mobile phone chip based on the 3nm process. However, it is not easy to achieve the 3nm process, and the iteration of the technology from 5nm to 3nm requires a lot of time and investment. According to reports, entering the 3nm process requires more than $30 billion in R&D and equipment expenditure. Such huge costs make it necessary for foundries to continuously introduce different versions of the 3nm process to meet the needs of different customers in order to achieve return on cost and profitability.
TSMC plans to carry out at least 5 technology iterations on the 3nm process, and eventually launch 6 different versions of the 3nm chip process. The first is the first-generation 3nm chip process, named N3, which is the most basic 3nm process, and Apple's A17Pro chip uses this process. Subsequently, TSMC introduced the N3E process, which is equivalent to the first enhanced version of the N3, with a 5% increase in performance but the same transistor density.
Next, in 2024, TSMC will launch two more 3nm versions. The first is the N3P process, which offers a 10% increase in performance, a 4% increase in transistor density, and a 5-10% reduction in power consumption compared to N3. There is also an N3AE version for automotive chips. By 2025, TSMC will launch the N3X process, which has a 15% increase in performance, a 4% increase in transistor density, and the same power consumption compared to N3, which can be said to be the highest performance version of the 3nm process. And in 2026, TSMC plans to launch the N3A process, which is a full-featured version of the N3AE automotive chip for more types of automotive chips.
By launching multiple versions of the 3nm process, TSMC can meet the needs of different customers, enhance the competitiveness of its products, and obtain sufficient profits from it. This is also to make full use of the high investment in the 3nm process, receive more orders, make the input-output ratio higher, and avoid the economic consideration of losing money. It is foreseeable that even if the 2nm process is launched in 2025, TSMC will continue to push forward with further iterations of the 3nm process, because the high cost of the 3nm process requires continuous innovation to achieve higher returns. This may also explain why many chip manufacturers are not in a hurry to advance the process, because each generation of the process faces high costs and it is difficult to achieve a return on cost.
It is foreseeable that the 2nm process will also face the same challenges and needs as 3nm. As it will be more difficult and costly to move from 2nm to 1nm, foundries need to launch more versions of the 2nm process to meet the needs of different customers in order to obtain sufficient profits and return on investment. Only by constantly innovating and innovating can we achieve competitive advantages and profitability in the highly competitive chip market.
The iteration of the 3nm chip process is not only a technological advancement, but also an economic consideration. In order to earn enough returns, TSMC had to carry out multiple iterations on the 3nm process and launch different versions of the 3nm chip process to meet the needs of customers. This also reflects the high investment and high risk of chip manufacturing, and each generation of process is accompanied by huge R&D expenses and equipment expenditures. In order to meet the challenges of the future, only by continuous innovation and technological progress can we occupy a place in the fierce market competition and achieve sustainable development. For the technology industry, any technological innovation requires arduous exploration and huge investment, but only in this way can the industry continue to move forward and bring more advanced and efficient products and services. For consumers, the upgrade of each generation of chips means better performance and experience, and also brings a broader space for the progress and application of science and technology. The iteration of the process is not only the progress of technology, but also from an economic point of view, how to better achieve the return on investment, and provide a guarantee for the sustainable development of the industry.